DHL Q3 profits rise despite slide in airfreight volumes and revenues
DHL Global Forwarding, the leading international provider of air, sea and road freight services, and a division of Deutsche Post DHL Group, has posted a 0
DHL Global Forwarding, the leading international provider of air, sea and road freight services, and a division of Deutsche Post DHL Group, has posted a 0.9 per cent year-on-year increase in revenues to EUR3.7 billion (US$4.1 billion) and a 17 per cent surge in earnings before interest and tax to EUR124 million.
However, the company's airfreight business reported that volumes for the third quarter were down 5.1 per cent year on year to 502,000 tonnes, revenues slipped by 4.7 per cent to EUR1.1 billion and gross profit climbed 2.1 per cent to EUR238 million.
Currency gains helped boost performance, the company said.
The decline in volumes mirrors current market conditions, although it performed better than rival Kuehne+Nagel which reported a 7.5 per cent decline, reports London's Air Cargo News.
'As in the second quarter, the global air freight market remained weak,' the company said. 'Global Forwarding, Freight nonetheless succeeded in markedly improving profitability thanks to the consistent implementation of cost-efficiency measures.'
The improved profitability would also have been helped by the usual lag when it comes to carrier rate decreases making it through to the customer.
The wider Deutsche Post DHL business saw third-quarter revenues increase by 4.7 per cent on last year to EUR15.5 billion while EBIT reached EUR942 million from EUR376 million last year, with the prior-year figure being impacted by non-recurring expenses of EUR392 million at Post & Parcel Germany.
Frank Appel, chief executive of Deutsche Post DHL Group, said: 'We had a very good third quarter. All five divisions performed well despite the challenging global economic environment.
'Thanks to our broad portfolio and the market-leading position of our divisions, we are growing even in uncertain times. For the fourth quarter, we anticipate a traditionally strong holiday season.'
The company also said that during the third quarter the express division added two more B777Fs into service.