Asian growth boosts profit at Deutsche Post
Deutsche Post DHL said it was upbeat on the rest of the year yesterday after new contracts and demand for express delivery services in Asia helped it beat expectations for sales and profit in the first quarter.
“There is still very healthy growth [in Asia] and we are profiting from that because we are still very strong in Asia in our DHL division,” chief financial officer Larry Rosen said.
Companies around the world are pinning their hopes for 2012 on resilient growth in Asia – where Deutsche Post generates about 14 per cent of annual sales – as the US struggles through a soft patch and Europe battles recession.
First-quarter earnings before interest and tax at Europe’s biggest express delivery and mail company were up 9.9 per cent at €691m (£557m), beating a consensus forecast of €656m.
It said it still sees its 2012 earnings improving to between €2.5bn and €2.6bn, from €2.44bn last year, with an increase in sales, and affirmed its medium-term targets.
Deutsche Post’s strong results come after US rival United Parcel Service posted disappointing quarterly results and FedEx lowered its outlook for the rest of the year.
“Even in the face of an uncertain economic climate, particularly in western economies, we believe that the group will continue to experience good earnings momentum,” Deutsche Post said.
Deutsche Post’s quarterly revenue edged up 4.3 per cent to €13.4bn, while sales in the Asia-Pacific region were up by 12 per cent.