FRANKFURT, (Pakistan Point News - APP - 3rd Augst,2016) - German logistics group Deutsche Post said Wednesday it had achieved its strongest-ever second-quarter operating result, boosted in large part by online shopping. "Our Post, eCommerce and Parcel division in particular contributed to the positive trend" that saw Deutsche Post increase its net profit to 541 million Euros ($606 million), a 66-percent leap over the same period in 2015, chief executive Frank Appel said.
That outdid predictions from analysts surveyed by Factset, who had predicted a lower increase of 40 percent for the company which operates express delivery firm DHL. Group revenues decreased between April and June compared with 2015 to 14.2 billion euros, a fall of 3.5 percent compared with 2015's second quarter. The firm blamed the decrease on Currency effects, lower fuel surcharges, and accounting changes affecting a large contract.
But it was able to increase its operating profit by 40 percent to 752 million euros -- a record second quarter for the group. "We remain well on track towards achieving our targets," Appel went on. "We took the right decisions and made the right investments in 2015." Deutsche Post aims to hit an underlying, or operating, profit of between 3.4 and 3.7 billion euros in 2016, and to average 8.0 percent growth annually over the 2013-2020 period.
The post and parcel division contributed to the second-quarter growth with an increase in its operating profit to 247 million euros, up from 75 million in 2015. Deutsche Post said that was largely down to growth in deliveries from online retailers and an increase in the price of stamps. After adjusting for the effect of strikes which hit during 2015's second quarter, which cost the firm 100 million euros, the division boosted its operating profit by 40 percent. Meanwhile the DHL courier service saw operating profit increase 10.5 percent to 591 million euros. Deutsche Post also decided to dispose of its Postbus long-distance passenger service, agreeing a sale to competitor Flixbus without revealing any financial details. "The Postbus service has not met the company's financial expectations sufficiently," the firm said in a statement.