11.03.2015
Deutsche Post AG DE0005552004
Deutsche Post AG: Deutsche Post DHL Group increases earnings and continues to invest in long-term success
(DGAP-Media / 11.03.2015 / 07:00)
Deutsche Post DHL Group increases earnings and continues to invest in
long-term success
- Operating earnings increase by 3.5 percent to EUR 2.97 billion
- Group proposes to raise dividend to EUR 0.85 per share
- Further growth expected in 2015; full year operating earnings of EUR
3.05 billion to EUR 3.2 billion targeted
- CEO Frank Appel: "We will remain on our growth path in 2015 and focus
on the opportunities and challenges we face, as we execute our Strategy
2020."
Bonn, March 11, 2015: Deutsche Post DHL Group, the world's leading postal
and logistics company, has increased revenues and met its targets for EBIT
and cash flow in 2014. Compared to last year, revenues rose by 3.1 percent
to EUR 56.6 billion (2013: EUR 54.9 billion) with all four of the company's
operating divisions contributing to this improvement. Organically, Group
revenues climbed by 4.2 percent in 2014, supported by steady volume and
revenue gains in the international express and German parcel businesses in
particular.
These improvements are the result of the company's outstanding market
position in the world's growth segments - namely E-Commerce and emerging
markets - and its strong operational performance, which have enabled margin
improvements that led to an EBIT increase of 3.5 percent, or EUR 100
million, to EUR 2.97 billion in 2014 (2013: EUR 2.87 billion). Operating
earnings therefore finished the full year 2014 within the targeted corridor
of between EUR 2.9 billion and EUR 3.1 billion. Post - eCommerce - Parcel
(PeP) contributed EUR 1.3 billion as projected and the DHL divisions EUR
2.02 billion.
"Despite a still challenging environment we delivered a solid performance
in 2014, by building on our strong market position in E-Commerce and
emerging markets," said Frank Appel, the CEO of Deutsche Post DHL Group.
"In 2014 we were able to further successfully execute Strategy 2015 despite
the lack of significant tailwind from the global economy. This year we
begin executing Strategy 2020 in each of our divisions. While we remain on
our growth path in 2015, we will focus on the opportunities and challenges
we face in order to further strengthen our competitiveness for the
successful future of our Group."
Outlook: Detailed guidance for 2015 announced, targets for 2016 and 2020
confirmed
Although the world economy is projected to continue to see only moderate
growth, and with further strategic investments planned, the Group still
expects 2015 to be a year of growth with an increase of operating earnings
to between EUR 3.05 billion to EUR 3.2 billion. While the Post - eCommerce
- Parcel (PeP) division is anticipated to contribute at least EUR 1.3
billion to this total, the DHL divisions should continue to grow earnings
towards an EBIT of EUR 2.1 billion to EUR 2.25 billion during the year. In
PeP, the eCommerce - Parcel business is expected to drive earnings growth,
partially offset by an increase in factor costs and the ongoing structural
decline of letter volumes within the Post segment. DHL EBIT gains will be
mainly driven by growth in Time Definite International (TDI) volumes and
continuation of incremental margin improvements at Express, while operating
earnings growth at Supply Chain will be tempered by investments in an
optimization program that will see them introduce further efficiency and
standardization globally. In the Global Forwarding - Freight division the
results will be strongly influenced by the costs - both direct and indirect
- invested in the New Forwarding Environment (NFE) transformation program.
The Group plans to maintain the Corporate Center/Other expenses at around
EUR 350 million in 2015. In addition, the company expects to generate
sufficient free cash flow again to cover the dividend to be paid for
financial year 2014.
Looking towards 2016, Deutsche Post DHL Group continues to forecast an
increase in operating profit to between EUR 3.4 billion and EUR 3.7
billion. The PeP division is expected to generate earnings of more than EUR
1.3 billion, while the DHL divisions should contribute between EUR 2.45
billion and EUR 2.75 billion in 2016.
In the period between 2013 and 2020, Deutsche Post DHL Group continues to
expect EBIT to increase by an average of more than 8 percent annually
(CAGR). The DHL divisions are expected to contribute an average EBIT growth
of about 10 percent per year, while PeP is projected to increase its
operating earnings by around 3 percent on average. Furthermore, the company
plans to reduce the proportion of Corporate Center/Other costs to below 0.5
percent of Group revenues by 2020.
Fiscal year 2014: Operating earnings improved
In 2014, the Group's EBIT increased by 3.5 percent, or EUR 100 million, to
EUR 2.97 billion (2013: EUR 2.87 billion). In addition to improved revenues
in all four divisions, Express was the driving force behind the Group's
EBIT growth with a double-digit increase of 16.3 percent attributable to
increased TDI volumes and higher network efficiency. Supply Chain
contributed a 5.4 percent increase, while PeP improved EBIT by 0.9 percent
year-on-year. Global Forwarding - Freight EBIT declined significantly due
to lower gross profit levels and costs associated with the implementation
of NFE.
Due to one-off effects in last year's financial result and a higher tax
rate of 15.5 percent (2013: 14.0 percent) the consolidated net profit
declined from EUR 2.09 billion in 2013 to EUR 2.07 billion in 2014. This
translated into a decrease of basic earnings per share from EUR 1.73 in
2013 to EUR 1.71 in 2014. Adjusted for one-off effects, basic earnings per
share in 2013 would have been EUR 1.64.
Dividend: Group proposes dividend of EUR 0.85 per share
As outlined in the Group's finance strategy introduced in 2010, the Group
targets a payout ratio of between 40 percent and 60 percent of the
consolidated net profit adjusted for non-recurring items. In light of the
Group's solid performance in 2014 and their confidence in the company's
future development, the Board of Management and the Supervisory Board will
propose a dividend of EUR 0.85 per share to the Annual General Meeting on
May 27. Should shareholders approve this proposal, the Group will pay out 6
percent more than in the prior year, representing a payout ratio of around
50 percent.
Q4 2014: significant revenue gains, double-digit EBIT growth in PeP and
Express
At EUR 15.4 billion, revenues in the final quarter showed the strongest
growth of all quarters in 2014 in a year-on-year comparison. The increase
of 6.3 percent - or EUR 915 million - reflects a revenue gain in all four
divisions. Adjusted for exchange-rate effects, revenues in Q4 increased by
4.1 percent year-on-year. The Group's operating profit in the last three
months of the year increased by 1.9 percent to EUR 905 million (2013: EUR
888 million). This improvement was led by a strong gain of 13.6 percent in
PeP reflecting parcel volume growth due to strong seasonal effects and an
11.5 percent increase in Express due to strong TDI volume growth across all
regions. Nevertheless, the result was constrained by an EBIT decrease of
48.6 percent in Global Forwarding - Freight mainly due to the focus on the
transformation program NFE, and a decrease of 9.6 percent in Supply Chain
as a result of positive one-off effects last year, without which Supply
Chain EBIT in Q4 would have increased by 8.8 percent. Consolidated net
profit declined by 17.1 percent to EUR 640 million in Q4 (Q4 2013: EUR 772
million) as a result of a higher tax rate. Correspondingly, basic earnings
per share for the fourth quarter fell to EUR 0.53 (2013: EUR 0.64).
Capital expenditures: Investments to support future growth
To bolster its foundation for continued profitable growth, the Group
invested a total of EUR 1.88 billion in 2014 (2013: EUR 1.75 billion) - in
line with guidance of about EUR 1.9 billion. The investments were made
across all four divisions, primarily in areas that position the company for
future growth: expansion of the parcel infrastructure, upgrades of global
and regional Express Hubs in Leipzig, Cincinnati, Singapore and Dubai, more
efficient cargo aircrafts, infrastructure for new business wins in Supply
Chain and the Global Forwarding - Freight transformation project NFE.
Cash flow: Group exceeds target
Based on strong year-end cash generation, Deutsche Post DHL Group was able
to increase the operating cash flow by 1.7 percent to EUR 3.04 billion in
2014 (2013: EUR 2.99 billion), which is roughly in line with the EBIT
trend.
The free cash flow performance was EUR 1.35 billion (2013: 1.67 billion),
exceeding the target of generating sufficient free cash flow to cover the
dividend of EUR 968 million paid out to shareholders in 2014. The decline
compared to last year is due to a higher cash-out for investments (net cash
capex).
Post - eCommerce - Parcel: Parcel business continues to develop dynamically
The revenues of the PeP division climbed by 2.6 percent to EUR 15.7 billion
in 2014 (2013: EUR 15.3 billion). The eCommerce - Parcel revenue
contribution to this result was EUR 5.7 billion, an improvement of 6.5
percent over last year. The eCommerce - Parcel unit now accounts for over
36 percent of the PeP division's revenue. This shows the company's success
in capitalizing on growth within the E-Commerce segment, particularly in
Germany. The volume increase of 7.0 percent in the German parcel business
underlines the growth momentum. Investments in innovative customer
solutions such as parcel boxes or the national and international expansion
of the Packstation network demonstrate how Deutsche Post DHL Group is
proactively and successfully addressing the evolving requirements of the
market.
Post revenues increased by 0.5 percent to EUR 10.0 billion, mainly
attributable to the price increases for both the standard letter and the
Infopost product though overall volumes continued to decline. The company's
E-Post offering contributed more than EUR 300 million in revenues and with
this fulfilled the expectations for 2014. Compared to last year, E-Post
revenues increased by more than 50 percent above last year (2013: EUR 213
million). The operating profit of the PeP-division increased by 0.9 percent
to EUR 1.3 billion in 2014, held back by higher material and staff costs.
CEO Frank Appel said: "We are satisfied with the positive results of our
PeP division over the last year. However, our success in the future depends
on having a more competitive cost base, particularly in Germany, which will
allow us to generate earnings over the long-term and further invest in our
people and infrastructure."
Express: 10 percent-margin one year ahead of target
In 2014, the Express division again saw significant gains in revenues and
earnings reflecting continued robust demand for TDI services and further
network efficiencies. Reported revenues amounted to EUR 12.5 billion, a
gain of 5.7 percent over 2013 (2013: EUR 11.8 billion). Adjusted for
exchange rate effects, the revenue increase amounted to 7.3 percent. The
main driver for this boost was again strong growth in international
time-definite shipments with a volume increase of 7.8 percent for the full
year and an increase of 7.8 percent in the final quarter.
The division's EBIT rose by 16.3 percent to EUR 1.3 billion in 2014 (2013:
EUR 1.1 billion) reflecting higher volumes combined with strict cost
management. The 2014 EBIT margin climbed to 10.1 percent, and with this
exceeded the projected 10 percent margin one year ahead of target.
Global Forwarding - Freight: Transformation ongoing
In a still challenging industry environment, Global Forwarding - Freight
achieved a moderate revenue increase of 0.9 percent to EUR 14.9 billion
(2013: EUR 14.8 billion). Adjusted for exchange rate effects, revenues
increased by 3.2 percent year-on-year. Both Air and Ocean Freight showed a
volume recovery towards the end of the year, reflected in the final
quarter's revenue increase of 4.9 percent compared to Q4 2013.
The division's operating profit fell strongly by 38.7 percent to EUR 293
million (2013: EUR 478 million). This development was a result of
significant resources being directly involved in the transformation program
New Forwarding Environment as well as the detailed management and workforce
attention that the project entails.
Supply Chain: good performance to be enhanced
Supply Chain increased both revenues and earnings in 2014. The division's
revenues climbed by 3.6 percent to EUR 14.7 billion (2013: EUR 14.2
billion) mainly driven by the Life Sciences & Healthcare sector and the
Europe region. At EUR 1.2 billion, the volume of new contracts concluded
with new and existing customers remains at a high level (2013: EUR 1.5
billion) especially given that the division is being more selective on
profitability when closing new contracts. Compared to the revenue increase,
the division's EBIT showed an even higher gain of 5.4 percent to EUR 465
million (2013: EUR 441 million). This solid performance of Supply Chain is
expected to be further enhanced in future years by standardization,
increased efficiency, and leveraging skills on a global scale.
- End -
Note to newsrooms: At www.dpdhl.com you will find an interview with CEO
Frank Appel and background information about the Group's Corporate
Responsibility Report that was also released today. The Group's press
conference will be broadcast live online beginning at 10 a.m. The investor
conference call will be webcast beginning at 2 p.m.
Media Contact:
Deutsche Post DHL Group
Media Relations
Dan McGrath/Christina Neuffer
Phone: +49 (0)228 182-9944
E-mail: [email protected]
On the Internet: www.dpdhl.com/press
Follow us: www.twitter.com/DeutschePostDHL
Deutsche Post DHL Group
Deutsche Post DHL Group is the world's leading logistics and mail
communications company. The Group is focused on being the first choice for
customers, employees and investors in its core business areas worldwide. It
makes a positive contribution to the world by connecting people and
enabling global trade while being committed to responsible business
practices and corporate citizenship.
Deutsche Post DHL Group operates under two brands: Deutsche Post is
Europe's leading postal service provider. DHL is uniquely positioned in the
world's growth markets, with a comprehensive range of international
express, freight transportation, eCommerce, and supply chain management
services.
Deutsche Post DHL Group employs about 480,000 employees in over 220
countries and territories worldwide. The Group generated revenues of more
than 56 billion Euros in 2014.
Die Post für Deutschland. The logistics company for the world.
Group financial highlights for 2014
Change in million euros 20131) 2014 in % Revenues 54,912 56,630 3.1% - of which international 37,929 39,263 3.5% Profit from operating activities (EBIT) 2,865 2,965 3.5% Consolidated net profit 2) 2,091 2,071 -1.0% Basic earnings per share (in euros) 1.73 1.71 -1.2% Diluted earnings per share (in euros) 1.66 1.64 -1.2%Divisional revenues for 2014 Share of Share of total total Change in million euros 20131) revenues 2014 revenues in % Post - eCommerce - Parcel 15,291 27.8% 15,686 27.7% 2.6% Express 11,821 21.5% 12,491 22.1% 5.7% Global Forwarding - Freight 14,787 26.9% 14,924 26.4% 0.9% Supply Chain 14,227 25.9% 14,737 26.0% 3.6% Corporate Center / Other and -1,214 n/a -1,208 n/a 0.5% consolidation Consolidated revenues 54,912 100% 56,630 100% 3.1%Divisional EBIT for 2014 Change in million euros 20131) 2014 in % Post - eCommerce - Parcel 1,286 1,298 0.9% DHL 2,002 2,019 0.8% - Express 1,083 1,260 16.3% - Global Forwarding - Freight 478 293 -38.7% - Supply Chain 441 465 5.4% Corporate Center / Other and -423 -351 17.0% consolidation Consolidated EBIT 2,865 2,965 3.5%1) Prior-year amounts adjusted 2) After non-controlling interests Group financial highlights for the fourth quarter of 2014 Fourth quarter Fourth quarter Change in million euros 20131) 2014 in % Revenues 14,450 15,365 6.3% - of which international 9,864 10,563 7.1% Profit from operating activities 888 905 1.9% (EBIT) Consolidated net profit 2) 772 640 -17.1% Basic earnings per share (in euros) 0.64 0.53 -17.2% Diluted earnings per share (in 0.61 0.50 -18.0% euros)Divisional revenues for the fourth quarter of 2014 Share of Share of Fourth Fourth quarter total quarter total Change in million euros 20131) revenues 2014 revenues in % Post - eCommerce - 4,183 28.9% 4,353 28.3% 4.1% Parcel Express 3,100 21.5% 3,411 22.2% 10.0% Global Forwarding - 3,774 26.1% 3,960 25.8% 4.9% Freight Supply Chain 3,699 25.6% 3,953 25.7% 6.9% Corporate Center / -306 n/a -312 n/a -2.0% Other and consolidation Consolidated 14,450 100% 15,365 100% 6.3% revenuesDivisional EBIT for the fourth quarter of 2014 Fourth quarter Fourth quarter Change in million euros 20131) 2014 in % Post - eCommerce - Parcel 374 425 13.6% DHL 628 580 -7.6% - Express 312 348 11.5% - Global Forwarding - Freight 138 71 -48.6% - Supply Chain 178 161 -9.6% Corporate Center / Other and -114 -100 12.3% consolidation Consolidated EBIT 888 905 1.9%1) Prior-year mounts adjusted 2) After non-controlling interests End of Media Release --------------------------------------------------------------------- Issuer: Deutsche Post AG Key word(s): Enterprise 11.03.2015 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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.dpdhl.com ISIN: DE0005552004 WKN: 555200 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP-Media --------------------------------------------------------------------- 332003 11.03.2015
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