Deutsche Post Q1 profits surge

Deutsche Post Q1 profits surge
Photo: DPA
Deutsche Post, the world's biggest postal and logistics company, said Tuesday that its first quarter net profit leapt by 80 percent to €1.7 billion.

Analysts polled by Dow Jones Newswires had forecast a 49 percent increase to €1.4 billion owing to a change in accounting standards and strict focus on controlling costs.

An economic rebound boosted the group’s logistics activities more than expected however, with core earnings posting a jump of 81 percent to €566 million on sales that gained 4.4 percent to €12 billion.

Maritime transport showed particularly strong results, as did DHL express package services.

The overall results were also boosted by “a significant positive effect” generated by financial instruments related to the sale of the retail banking unit Postbank to Germany’s largest bank, Deutsche Bank.

“We have broadly improved our performance,” a statement quoted Deutsche Post chief executive Frank Appel as saying. “But there is much more to accomplish,” Appel added.

“We will continue to press forward with the implementation of our Strategy 2015 and unlock the Group’s full potential step by step.”

The group, which employs some 500,000 people worldwide, has focused on efficiency gains and expects to pursue that path this year as well.

Deutsche Post confirmed its full-year 2010 outlook of operating profit before exceptional items between €1.6 to €1.9 billion, and said it “expected to finish the year at the upper end of the forecast range.”

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