Deutsche Post DHL more than tripled its net profit in the second quarter from a year ago to $368.9 million, driven by strong growth in express deliveries across Asia and the emerging markets of Africa and the Middle East.
The German mail, express and logistics giant’s operating profit also more than doubled, to $798 million compared to $359 million in the same period in 2010, even as revenue grew just 0.3 percent to $18.2 billion.
The DHL division, which groups express, ocean and air freight forwarding and supply chain management, accounted for $669 million of group profit, nearly four times its $173 million contribution in the second quarter of 2010.
The overall net profit of $368.9 million compared to $115 million in earnings the company reported last year.
The company raised its full-year outlook, saying earnings before interest and tax will be at the top end of its earlier forecast of $3.1 billion to $3.4 billion. That marked a rare improved outlook from a transportation world that has seen a parade of downbeat forecasts for the rest of 2011 from companies across the shipping spectrum.
“We are continuing to grow and have kept the positive momentum of the last quarters,” said CEO Frank Appel.
Deutsche Post said it expects continued double digit growth in DHL’s operating earnings which should reach $2.3 billion to $2.4 billion in 2011, driven by its “exceptional” market position in the world’s fastest growing regions, particularly in Asia.
The express unit swung to a second quarter profit of $347 million from a year earlier loss of $42.6 million.
Global freight forwarding profit jumped 13.1 percent in the period to $159 million on strong growth in ocean and air freight and double digit growth in European overland transport.
Supply chain management earnings more than doubled from $75.3 million to $163.3 million.
DHL’s first half earnings surged by almost $710 million to $1.18 billion out of total group profit of $1.7 billion.
First half group revenue increased to $36.5 billion from $35.2 billion.