Deutsche Post DHL firing on all cylinders in Q3

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Deutsche Post DHL Group posted a third quarter operating profit of €942 million with all five divisions contributing to revenue and earnings.

Third quarter earnings before interest and tax (EBIT) was up from €376 million, but 2018 was affected by non-recurring expenses of €392 million at Post & Parcel Germany.

The Post & Parcel division turned the €202 million loss into a €304 million profit, and all DHL divisions saw EBIT increase.

EBIT at DHL Express was up 11% to €409 million, Global Forwarding Freight by 17% to €124 million, Supply Chain by 5.9% to €162 million and eCommerce Solutions turned around a €7 million loss into a €6 million profit.

Frank Appel, CEO of Deutsche Post DHL Group says: “All five divisions performed well despite the challenging global economic environment. Thanks to our broad portfolio and the market-leading position of our divisions, we are growing even in uncertain times. For the fourth quarter, we anticipate a traditionally strong holiday season and we reaffirm our guidance for the full year 2019.”

The Express division performed very well, with revenue up 8.7% to €4.2 billion and volumes per day in the international time-definite deliveries rising by 5.9%.

Global Forwarding Freight revenue increased 0.9% to €3.7 billion even though global airfreight remained weak in the second quarter.

The Supply Chain maintained the positive trend seen in the previous quarters and despite the sale of Chinese operations to SF Holding in the first quarter, revenue increased by 2.3% to €3.3 billion.

The newest division, DHL eCommerce Solutions, which was registered in the third quarter following its separation from the German Post and Parcel business, posted revenue growth of 5.4% to €964 million.

DHL says eCommerce Solutions would have made a greater contribution to operating profits were it not for €4 million of restructuring costs.