Deutsche Post DHL's profit soars 43.7%

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Deutsche Post DHL has revealed a near 50% improvement in profitability in its Express division following the sale or closure of loss-making business units, including the January sale of its UK domestic business.

The logistics giant has posted a 13.9% revenue rise to €12.8bn (£11bn) in the third quarter, compared to €11bn (£9.49bn) in Q3 2009. During the same period underlying EBIT (earnings before interest and taxes) rose 43.7% to €543m (£468m) from €378m (£326m).

Higher transport volumes, increased freight rates and new customers all contributed to the increase in sales, the firm says.

In addition to selling its UK domestic express business to Home Delivery Network in January, the firm also sold its French domestic business unit and massively restructured its US operation. These moves saw an improvement in EBIT at DHL Express of 48.1% to €194m (167.6m) in Q3 this year.

Underlying group EBIT for the full year is now expected to total up to €2.1bn (£1.8bn); in 2009 the business achieved EBIT of €1.47bn (£1.33bn).

Frank Appel, CEO of Deutsche Post DHL, says: "We have an exceptionally good position that allows us to profit tremendously from positive ecomomic trends. Our strategy is robust, our efficiency programmes are paying off, and our customers are rewarding our efforts."