February 9, 2010
Germany's Deutsche Post DHL, Europe's biggest mail and transport company, tentatively suggested the downturn in the global logistics market may have bottomed out.
In the fourth quarter all divisions reported a faster decline in volumes compared with the final three months of 2008, the Bonn-based company said April 21 at a shareholders meeting.
"However, the rate of decline has stabilized suggesting that overall flows are bottoming out," it added.
Despite significant restructuring costs for its retreat from U.S. domestic package delivery, earnings before interest and taxes, excluding one off gains or costs, were "slightly positive."
Underlying earnings fell by less than 50 percent in the quarter, the decline "mitigated" by cost cutting.
Net income in the first three months was $1.3 billion, boosted by the market valuation of put options on the group's shares in its Deutsche Postbank unit which it is selling in stages to Deutsche Bank. A year ago, Deutsche Post booked first quarter net profit of $529 million.
All divisions, including express operations outside the U.S., were profitable during the quarter. However, only the corporate supply chain unit improved earnings before tax and interest from the year-earlier period.
Restructuring of DHL Express in the U.S. "continues to make good progress," CEO Frank Appel said. The company has terminated talks with UPS about a potential airlift agreement and is moving its sorting hub to Cincinnati/Northern Kentucky from Wilmington, Ohio, "in order to further improve DHL Express's cost base over the long term."
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