Deutsche Post Profits From Online Trade

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Deutsche Post AG has shown strong first quarter profitability from the ongoing Asian trade and e-commerce. The company announced that sales rose by 4.3 percent to €13.4 billion. The postal and logistics company increased operational earnings by 10 percent to €691 million, thanks to the brisk business at DHL and efficiency improvements in the area of letters.

Net income grew disproportionately, showing an increase of 64 percent to €533 million. Around €186 million resulted from the sale of Postbank shares to Deutsche Bank. These are the result of the evaluation of the financial instruments used at that time. With this last disclosure the postal and logistics company finalises this transaction.

The figures surpassed the expectations of market analysts. Analysts had expected an improvement in sales of just over two percent and an increase in operating income by approximately three and a half percent. In the case of net income, they had forecast an improvement of almost 50 percent.

The postal and logistics group confirmed its outlook for the whole year. The management wants to boost the operating profit to €2.5 to €2.6 billion and increase net profit proportionally.

Even looking beyond the current fiscal year, the company maintains an optimistic outlook and anticipates a continuation of the positive development of results: while stabilising the introduced cost-cutting measures and growth programmes to achieve profitability in the letter area, the Group anticipates that its DHL division should continue to achieve an annual increase in earnings of 13-15 percent on average between 2010 and 2015.

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