Bruce Barnard | May 10, 2011 8:32AM EDT
Deutsche Post DHL increased first quarter operating profit 23 percent from a year ago to $906 million as strong growth in shipping volume, especially in Asia, sent revenue up 6.9 percent to $18.4 billion.
The DHL unit, including express parcel delivery and ocean and air freight forwarding, contributed $523 million to the group profit, up from $315 million in the same period in 2010.
Net income at the German mail and global logistics group fell to $468 million from $2.45 billion from last year, when options on the sale of the group’s former Postbank unit boosted profit by $2 billion.
“The positive performance was largely the result of markedly higher volume of international shipments [which] more than offset the sale of the domestic express business in the UK and France,” the Bonn-based company said.
CEO Frank Appel called the results “a dynamic and very successful start in 2011.”
“We are in an ideal position to benefit significantly from the continuing momentum in global markets,” he said.
Deutsche Post confirmed its 2011 outlook, saying it expects full year earnings before interest and tax to grow to between $3.2 billion and $3.5 billion from $2.6 billion in 2010.
DHL Express revenue climbed 5.5 percent in the quarter to $4 billion, driven by double-digit growth in the Americas and Asia-Pacific regions, and operating profit almost doubled to $311 million from $158 million a year ago.
Global freight forwarding revenue jumped 14.9 percent to $5.2 billion reflecting double-digit growth in global ocean and air freight volume and in European overland transport. Profit increased over 30 percent to $99 million.
Supply chain revenue grew 7.5 percent to $5.2 billion, with the highest gains in the Asia-Pacific region. Profit was up almost 40 percent at $112 million on an improved contract mix, and strict cost management to go with the higher volumes.
