DHL’s key business reports growth despite difficult market conditions

Monday, 26 November 2012 00:00 - - {{hitsCtrl.values.hits}}

In a business environment that remains challenging, the ‘Global forwarding, freight division’ mainly driven by favourable exchange-rate effects, boosted its third-quarter revenues by more than EUR 200 million, or 5.6 per cent, to EUR four billion. During the same quarter last year, revenues totalled EUR 3.8 billion. While air freight revenues remained stable, ocean freight generated double-digit growth in revenues as a result of rising volume and higher freight rates.

At the same time, the division profited from improved purchasing conditions in air freight. In combination with the selective growth strategy, the division’s gross margin continued to climb. While the division was able to realise further efficiency improvements, its operating earnings slipped slightly as a result of start-up costs related to the introduction of the new Information Technology (IT) infrastructure. At EUR 122 million the divisional EBIT in the third quarter of 2012 was 1.6 per cent below the previous year’s level of EUR 124 million.

In the third quarter of 2012, revenues in the ‘Supply chain division’ improved significantly. At EUR 3.7 billion, revenues between July and September 2012 were 10% above the previous year’s level of EUR 3.3 billion. In addition to positive exchange-rate effects, organic growth in the ‘Automotive’ and ‘Life Sciences and Healthcare’ sectors fuelled this increase. The division’s strong performance was also highlighted by newly concluded contracts with new and existing customers totalling EUR 290 million and is also reflected in a rise in operating earnings: During the third quarter of 2012, EBIT generated by the supply chain division climbed by nine per cent, from EUR 100 in the previous year’s period to EUR 109 million in 2012. This improvement in profitability primarily resulted from optimised contract management, continued strict cost controls and the division’s increased operating efficiency.

During the third quarter of 2012, the company’s ‘Express division’ profited further from its strong market position in the world’s dynamic growth regions, continued to improve revenues and earnings, and expanded its global market share once again. Between July and September, revenues climbed by nine per cent to EUR 3.2 billion (2011: EUR 2.9 billion). In addition to favourable exchange-rate effects, the strong growth produced in the volumes and revenues of International Time-Definite (TDI) shipments was once again the primary reason for the strong increase in revenues. During the period, double-digit growth in revenues was generated in all regions, with the exception of Europe. Revenues and volumes rose particularly in Asia and the Americas Region, where good business in the US played a major role in the division’s performance. In terms of EBIT, the division produced a strong gain in the third quarter of 2012: At EUR 231 million, earnings rose 6.9 per cent above the previous year’s level of EUR 216 million.