Deutsche Post DHL Group has seen profits for 2015 fall by 25.6 per cent to 1.5 billion euros ($1.6 billion), with the Global Forwarding division making losses due to renewing its IT system.
By division, earnings before interest and tax (EBIT) for Deutsche Post fell by 15 per cent to 1.1 billion euros while DHL was down 17.8 per cent to 1.6 billion euros. Of the DHL divisions, Express EBIT increased by 10.4 per cent to 1.2 billion euros and Supply Chain saw it drop by 3.4 per cent to 465 million euros. Global Forwarding made an EBIT loss of 181 million euros, blamed on the 336 million euro IT renewal, which DHL says is a one off cost.
In the fourth quarter profits were up 4.7 per cent to 640 million euros. Deutsche Post profit measured in EBIT was up 14.6 per cent to 487 million euros and DHL was up 2.6 per cent to 595 million euros. Despite a strong year, DHL Express EBIT was down 8.3 per cent in the fourth quarter to 348 million euros, with Global Forwarding up 39.4 per cent to 99 million euros, and Supply Chain increasing by 9.3 per cent to 176 million euros.
Deutsche Post DHL Group chief executive officer, Frank Appel says: “In 2015 we made significant progress against our strategic initiatives. Over the entire year, we have worked hard to pave the way for sustainable success in the future.”
“The positive earnings momentum we have seen in the fourth quarter once again confirms the fundamental strength of our business. We are firmly on track with our strategy.”
The group says 2015 was a transition year, laying the foundations for profitable growth in 2016 and beyond as part of Strategy 2020. Deutsche Post is investing in its parcel network to harness growth in e-commerce, it has come to a wage agreement with unions in Germany and increase letter postage prices. Express has invested in its network infrastructure and quality, while Global Forwarding has upgraded its IT, and Supply Chain says it has optimised business through restructuring.