Bruce Barnard, Special Correspondent | May 24, 2012 10:00AM EDT
Germany’s Deutsche Post said it expects profits to increase by 1 billion euros ($1.25 billion) a year by 2015, driven by strong growth across its DHL transport and logistics businesses and stabilized earnings at its mail unit.
Europe’s biggest logistics company is targeting earnings before interest and tax of $4.2 billion to $4.4 billion compared to $3 billion in 2011.
The DHL divisions will make an operating profit of $3.4 billion to $3.6 billion, hitting the company’s target of average annual growth of 13 to 15 percent between 2010 and 2015.
The mail unit has stabilized earnings above $1.25 billion, following several years of decline, driven by what it called dynamic growth in the parcel business.
Deutsche Post delivered almost 14 percent more parcels in the first quarter than in the same period last year. A $940 million modernization of the domestic parcel network through 2014 will ensure the mail division’s operating profit will be maintained at a minimum level of at least $1.25 billion in 2015, the Bonn-based company said.
“In recent years we have succeeded in positioning ourselves exceptionally well in the global growth markets and laid the foundation for continued profitable growth in the future,” Deutsche Post CEO Frank Appel told analysts and investors in London. “We have stabilized earnings in the mail division and are now capitalizing on the tremendous growth opportunities at DHL,” he said.
DHL’s supply chain division, which booked new contracts worth more than $1.25 billion in 2011 for the fourth consecutive year is “exceptionally well positioned to benefit from key market developments,” Appel said.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
