14.05.2013
Deutsche Post AG DE0005552004
DGAP-News: Deutsche Post DHL boosts operating profit in the first quarter of 2013
DGAP-News: Deutsche Post AG / Key word(s): Quarter Results
Deutsche Post DHL boosts operating profit in the first quarter of 2013
14.05.2013 / 07:00
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Deutsche Post DHL boosts operating profit in the first quarter of 2013
- Consolidated revenues slightly up to EUR 13.4 billion
- EBIT increased to EUR 711 million in the first quarter
- Focus on cash generation paying off
- Full year guidance for 2013 confirmed: EBIT expected to increase to
between EUR 2.7 billion and EUR 2.95 billion
- CEO Frank Appel: 'Solid start into the new year'
Bonn, May 14, 2013: During the first quarter of 2013, Deutsche Post DHL
built on its successful performance of last year. In a business environment
characterized by persistent economic challenges, the world's leading postal
and logistics group increased revenues by 0.6 percent to EUR 13.4 billion
in the first three months of the year compared with the same period last
year. Adjusted for exchange-rate effects and inorganic factors, revenues
climbed by 1.5 percent. The driving forces of this growth were primarily
volume and revenue gains generated by the international express business as
well as the parcel segment in Germany. This growth reflects the company's
exceptional market position in the world's highly dynamic markets. The
Group improved its operating earnings once again: At EUR 711 million, EBIT
produced during the first quarter rose EUR 20 million above the level
generated in the same period last year. The development of the consolidated
net profit was even more pronounced: Net income adjusted for last year's
one-time effects related to the final Postbank transaction jumped by 45
percent to nearly EUR 500 million.
'Even though we have yet to feel any sort of economic tailwind, we were
able to get off to a solid start in the new year. In doing so, we
demonstrated once again just how robust our business model is and lived up
to our position as market leader,' said Frank Appel, CEO of Deutsche Post
DHL. 'Thanks to our commitment to customers, the gains in efficiency we
have made in recent years and our determination to continuously simplify
processes, we can reliably deliver profitable growth.'
First quarter of 2013
During the first quarter of 2013, the Group boosted revenues by EUR 80
million to EUR 13.4 billion. Adjusted for exchange-rate effects and
inorganic factors, revenues were about EUR 200 million above the level
generated in the previous year's period - and the Group was able to produce
this result even though the loss of around 2.5 working days in Germany
negatively impacted the year-on-year comparison. This factor also affected
operating earnings, which the company was nonetheless able to increase by
2.9 percent to EUR 711 million in the first quarter of 2013 (2012: EUR 691
million). By improving earnings by 4 percent to EUR 427 million, the DHL
divisions once again were the driving force behind EBIT generation and
growth. During the first quarter, the Group's financial result fell from
EUR 69 million in 2012 to minus EUR 44 million in 2013. This decrease was
attributed mainly to the non-recurrence of last year's positive one-time
effects related to the completion of the Postbank transaction totaling EUR
186 million. During the first three months of 2013, consolidated net profit
thus fell from EUR 529 million in the previous year to EUR 498 million in
2013. This corresponds to a drop in basic earnings per share to EUR 0.41
(2012: EUR 0.44). Excluding the Postbank effects from last year,
consolidated net profit and earnings per share would have risen by more
than 45 percent due to operational improvements and lower taxes.
Cash flow
During the first three months of 2013, the Group made significant progress
in its intensified efforts to improve cash flow. While the company's
operating activities had resulted in a cash outflow of EUR 357 million last
year, a positive operating cash flow of EUR 120 million was generated in
the first quarter of 2013. This rise of nearly EUR 500 million primarily
reflects the EBIT increase and working capital improvements. As a result,
free cash flow improved considerably in a year-on-year comparison and
totaled minus EUR 140 million in the first quarter of 2013 (2012: minus EUR
656 million) despite the payment made to the Bundes-Pensions-Service für
Post und Telekommunikation, a special pension fund for the company's civil
servants, which occurs at the beginning of each year (2013: EUR 540
million). The Group's net debt totaled EUR 2.3 billion at the end of the
quarter. This represented a seasonal rise of EUR 298 million compared with
the end of 2012.
Capital expenditures
In the first quarter of 2013, the Group's capital expenditures totaled EUR
218 million (2012: EUR 305 million). The focus of these investments
continued to be the DHL divisions. These expenditures flowed into such
areas as the continued expansion of the network, a more efficient air
fleet, state-of-the-art warehouses and a new Global Forwarding IT
infrastructure. As a result, the Group has further bolstered its foundation
for continued expansion and long-range company success. In the MAIL
division, capital expenditures were increased particularly with the aim of
expanding the parcel infrastructure.
Outlook
The Group expects the world's economy to generate moderate growth in 2013.
Against this background the Group continues to expect its EBIT to increase
to between EUR 2.7 billion and EUR 2.95 billion. While the MAIL division is
anticipated to contribute between EUR 1.1 billion and EUR 1.2 billion to
this figure, DHL should generate operating earnings of between EUR 2.0
billion and EUR 2.15 billion. Corporate Center/Other expenditures are
forecast to again total about EUR 400 million. The Group's consolidated net
profit is projected to grow in line with the operating business in 2013.
The company also expects that its focus on cash flow will enable this
year's free cash flow to at least cover the proposed dividend for fiscal
year 2012.
'We are making good progress toward meeting our mid-range targets,' a
confident CEO Frank Appel said in discussing his outlook for the year and
beyond. The company also expects the positive earnings trend to continue
over the next few years. At DHL, the Group forecasts earnings to rise by an
annual average of between 13 percent and 15 percent between 2010 and 2015.
The operating profit of the MAIL division should stabilize at a level of at
least EUR 1 billion thanks to cost-cutting measures and growth programs
that have been introduced. In combination with the planned reduction of
expenditures for Corporate Center/Other, the Group expects operating
earnings to increase to between EUR 3.35 billion and EUR 3.55 billion by
2015.
MAIL division
Even though the first quarter of 2013 had 2.5 fewer working days than the
same period last year and volume in the Group's traditional mail business
continues to decline as expected, revenues in the MAIL division increased
1.5 percent to EUR 3.6 billion in the first three months of 2013. In
addition to the postal-rate increase that took effect at the beginning of
the year, another key reason for this rise was the continued strong
performance of the company's parcel business in Germany. The ongoing growth
in volume and revenues - 11 percent per workday in the first quarter of
2013 - was primarily due to booming online retailing, a trend the company
is also fueling with its own comprehensive range of products and services
for shippers and parcel recipients. The parcel business is also acting as a
key support in the effort to stabilize the division's profitability. In
combination with strict cost management, the MAIL division was able to
partially offset the impact of the reduced number of working days and
higher labor costs resulting from wage increases that took effect in the
second quarter of 2012 as part of a collective bargaining agreement.
Altogether, EBIT in the MAIL division fell by 2.6 percent in the first
quarter of 2013 to EUR 382 million (2012: EUR 392 million).
EXPRESS division
At the beginning of 2013, the EXPRESS division profited once again from its
strong market position in the world's dynamic growth regions and increased
its profitability. Reported revenues totaled EUR 3.0 billion in the first
quarter of the current year, slightly above the previous year's level.
Adjusted for exchange-rate effects and the sale of the domestic express
businesses in Australia and New Zealand, revenues rose by 2.4 percent -
despite the loss of two working days. Again, the main contributor to the
increase in revenues was the strong growth in the Time Definite
International product line - daily shipment volumes grew by 10 percent in
the first quarter. This positive trend is the direct result of significant
volume and revenue gains achieved in all regions. After the EXPRESS
division has made significant investments into the expansion of its
international network, the training of its employees and its range of
services in recent years, the operational improvements are now producing
the expected gains in profitability: In the first quarter of 2013,
operating earnings in the division totaled EUR 254 million, nearly 10
percent above the previous year's level of EUR 232 million. This result
also includes income of EUR 12 million generated by the sale of the
domestic express business in Romania.
GLOBAL FORWARDING, FREIGHT division
In the GLOBAL FORWARDING, FREIGHT division, first-quarter revenues in 2013
decreased by nearly 2 percent to EUR 3.6 billion in a difficult business
environment. In the first quarter of 2012, revenues had totaled EUR 3.7
billion. This year, the air- and ocean-freight units moved in different
directions: Volume and revenues in the air-freight business decreased
primarily because of a strong drop in demand in the 'Technology' and
'Engineering & Manufacturing' sectors. On the other hand, volume and
revenues rose in ocean freight, largely due to increased demand on
north-south routes and within Asia. Thanks to the division's selective
market strategy and strict, ongoing cost management, operating earnings
rose slightly to EUR 88 million (2012: EUR 87 million) despite the dip in
revenues.
SUPPLY CHAIN division
Revenues in the SUPPLY CHAIN division rose during the first quarter of
2013. They totaled EUR 3.5 billion between January and March 2013, more
than 2 percent above the previous year's level of EUR 3.4 billion. Adjusted
for negative exchange-rate effects, revenues rose by nearly 4 percent. This
growth was fueled in particular by double-digit revenue increases in the
Asia-Pacific region and gains in the key sectors of 'Automotive', 'Retail'
and 'Airline Business Solutions'. During the first quarter, the volume of
new contracts concluded with existing and new customers totaled EUR 430
million, more than double the level generated in the same period last year.
The division's EBIT fell from EUR 92 million in the first quarter of 2012
to EUR 84 million this year due to insolvency proceedings involving a
customer in the United States. Adjusted for this effect, the division's
operating earnings would have been slightly above the previous year's level
thanks to optimized contract management and successful business performance
in the Americas and Asia-Pacific regions.
- End -
Group financial highlights for the first quarter of 2013
1st Change in million euros quarter 2012 1st quarter 2013 in % Revenues 13,364 13,444 0.6% - of which international revenues 9,103 9,177 0.8% Profit from operating activities 691 711 2.9% (EBIT) Consolidated net profit1) 2) 529 498 -5.9% Basic earnings per share (in euros) 0.44 0.41 -6.8% Diluted earnings per share (in 0.44 0.40 -9.1% euros)Divisional revenues in the first quarter of 2013 1st Share of 1st Share of quarter total quarter total Change in million euros 2012 revenues 2013 revenues in % MAIL 3,557 26.6% 3,612 26.9% 1.5% EXPRESS 3,020 22.6% 3,037 22.6% 0.6% GLOBAL FORWARDING, 3,686 27.6% 3,615 26.9% -1.9% FREIGHT SUPPLY CHAIN 3,409 25.5% 3,483 25.9% 2.2% Corporate Center/ -308 n/a -303 n/a 1.6% Other and consolidation Group revenues 13,364 100% 13,444 100% 0.6%Divisional EBIT in the first quarter of 20131) 1st Change in million euros quarter 2012 1st quarter 2013 in % MAIL 392 382 -2.6% DHL 411 427 3.9% - EXPRESS 232 254 9.5% - GLOBAL FORWARDING, FREIGHT 87 88 1.1% - SUPPLY CHAIN 92 84 -8.7% Corporate Center/Other and -112 -97 13.4% consolidation Group EBIT 691 711 2.9%1) Prior-year amounts adjusted. 2) After non-controlling interests. End of Corporate News --------------------------------------------------------------------- 14.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Deutsche Post AG Charles-de-Gaulle-Straße 20 53113 Bonn Germany Phone: +49 (0)228 182 - 63 100 Fax: +49 (0)228 182 - 63 199 E-mail: [email protected] Internet: www.dp-dhl.de ISIN: DE0005552004 WKN: 555200 Indices: DAX Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 210838 14.05.2013
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