Postbank sale takes edge off Deutsche Post DHL growth in 2011

Postbank sale takes edge off Deutsche Post DHL growth in 2011

Thursday, March 8th, 2012 

Deutsche Post DHL reported its latest results today, with its recent Postbank share sale heavily denting its growth figures, taking some of the shine off the good progress seen in its operations during 2011.

 

The year saw growth driven primarily by the company’s DHL divisions, with its mail operations showing a stable performance compared to 2010.

 

The German logistics giant said its net profit for the last quarter of 2011 dropped 64% to EUR 175m, while for the whole of 2011 net profits were halved from EUR 2.5bn in 2010 to EUR 1.2bn in 2011.

 

However, revenues increased 2.1% during the last quarter (to EUR 14.1bn) and 2.8% in the full year, to EUR 52bn.

 

The valuation from 2010's sale of Postbank stock, to Deutsche Bank, took a EUR 1.6bn impact on Deutsche Post’s results compared to the previous year. Net profits would have been up 50% for the year without these affects, the company said.

 

Operationally, Deutsche Post executives said they had had a strong last quarter for a successful 2011. Mail revenues stabilised, with a slight decline in letter volumes countered by increasing parcel volumes, but much of the growth in the group overall was driven by DHL, with express and freight income showing good growth, particularly from Asia, despite generally weak demand for forwarding.

 

 

CFO Larry Rosen said Deutsche Post DHL had a strong end to a successful 2011 For us, this has been a strong end to a successful 2011, said CFO Larry Rosen today.

 

Our revenue growth is almost 3%, but we achieved 5.3% organic growth when adjusting for currency and consolidation affects, while DHL saw growth of over 7%. Our decline in net profit reflects Postbank and 2010 non-recurring charges – our financial result was heavily affected by the valuation affect from the Postbank transaction.”

 

Executives predicted that earnings would bounce back in 2012 to around EUR 2.5bn to 2.6bn for the group, with mail earnings stable at just over EUR 1bn and DHL’s earnings pushing up towards EUR 1.9bn

 

POST AND PARCEL NEWS MARCH 8th

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