DHL 2Q operating profit up 16pc to US$1 billion after revenue loss
EXPRESS delivery giant Deutsche Post DHL's second quarter operating profit rose 16 per cent to EUR890 million (US$1
EXPRESS delivery giant Deutsche Post DHL's second quarter operating profit rose 16 per cent to EUR890 million (US$1.008 billion), drawn on quarterly revenues of EUR500 million, after having suffered a loss of EUR547 million in the previous corresponding period.
'This includes the already expected negative impact of around EUR100 million to realign the group's StreetScooter activities and an additional around EUR100 million impact from special one-time impairments, such as a consequence of the lockdown measures,' said the Bonn-based company.
Breaking down the group's second quarter 2020 performance into divisions, Global Forwarding Freight saw its operating profits decrease from EUR190 million last year to EUR124 million this year. Ebit in the Supply Chain division also decreased (by 66 per cent) from EUR87 million in 2019 to EUR30 million in 2020.
The best-performing division was Post & Parcel Germany, which posted a 47 per cent increase in operating profit - from EUR177 million in 2019 to EUR260 million in 2020.
Said CEO Frank Appel: 'We have decided to pay a dividend at the previous year's level to our shareholders and a special bonus for our employees. Our strategy is focused on achieving three bottom lines: we want to be the provider, employer and investment of choice.'
DHL predicted full year operating profit would be between EUR3.5 billion and EUR3.8 billion. Divisionally, DHL expects an ebit of EUR1.5 billion for Post & Parcel Germany and between EUR2.8 billion and EUR3.1 billion for its other divisions.
Revenue of EUR1.4 billion is expected in investments of EUR2.9 billion, which includes around EUR300 million for the Boeing 777 renewal programme of its Express fleet.