DHL lifts annual operating profit outlook above 7 billion euros
DHL raised its annual operating profit guidance to more than 7 billion euros after preliminary third-quarter results showed stronger revenue and earnings. Express led the profit increase, while other divisions moved in different directions. Management also lifted its cash flow and investment outlook, ahead of detailed quarterly results scheduled for November 5.
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Annual earnings guidance moves higher
DHL Group, the Germany-based logistics company, raised its full-year earnings outlook after positive earnings momentum. Management pointed particularly to the Express division and prospects for a strong seasonal peak in the final quarter. The decision follows preliminary third-quarter results; the annual figures remain management guidance.[1], [2]
The company now expects group earnings before interest and tax to exceed 7 billion euros, compared with more than 6.5 billion euros previously. The DHL divisions’ threshold rises from more than 5.9 billion euros to more than 6.4 billion euros. Post & Parcel Germany guidance remains above 900 million euros, with Group Functions still expecting a loss of around 400 million euros.[1]
Express leads the quarterly profit increase
Preliminary third-quarter revenue rose more than 12 per cent to about 22.6 billion euros. Operating earnings reached 1,710 million euros, against 1,477 million euros a year earlier. Express earnings increased from 692 million euros to 1,035 million euros. The prior-year Express result included 54 million euros of negative one-off effects. Management estimates around 100 million euros of support from airfreight capacity constraints.[1]
At DHL, Global Forwarding earnings rose from 195 million euros to 260 million euros and Supply Chain from 278 million euros to 300 million euros. eCommerce fell from 176 million euros to 50 million euros; its prior-year result included a positive 123 million euros one-off effect. Post & Parcel Germany declined from 218 million euros to 150 million euros.[1]
Cash flow and investment outlook also rise
Annual free cash flow excluding net mergers and acquisitions is now expected above 3.2 billion euros, versus around 3 billion euros previously. Capital expenditure guidance rises to around 3.6 billion euros. Investment in owned assets reached 900 million euros in the quarter and 2.2 billion euros over nine months. Detailed third-quarter results are due on November 5.[1]
