Deutsche Post DHL Group has reported air freight volumes fell in the third quarter (Q3) from July to September by 5.2 per cent to 529,000 tonnes but revenue was up 8.4 per cent to €1,202 million.
In Q3, revenue in the DHL Express division rose by 7.2 per cent on the prior year to €3.9 billion. The division grew operating profit by 9.9 per cent to €409 million on the back of strict yield management and continuous improvements in the network.
In Q3, the Global Forwarding, Freight division revenue was up by 4.2 per cent to €3.7 billion, despite the more selective approach taken with regard to the profitability of certain contracts. Gross profit increased 4.2 per cent over the prior year to €887 million. Operating profit climbed by 58.2 per cent to €106 million.
The Group’s overall revenue increased by 4.7 per cent to €14.8 billion in Q3, driven by the Express and Global Forwarding, Freight divisions. Operating profit (EBIT) came in at €376 million for Q3 and the figure was below the prior-year amount of €834 million, but DHL said in line with the Group’s forecasts. All in all, generated consolidated net profit after non-controlling interests of €146 million in Q3 of 2018 (2017: €641 million).
Deutsche Post DHL Group said it is well on its way to reaching the Group’s earnings targets for full year 2018 and it still intends to increase operating profit to more than €5 billion by 2020.
Chief executive officer, Frank Appel said: “Deutsche Post DHL Group remains in good shape with our fundamental growth drivers intact. This is especially evident in the continued good performance of our DHL Express, Global Forwarding, Freight, and Supply Chain divisions in the third quarter.
“We are tackling the challenges in our Post – eCommerce – Parcel division with determination and are making good progress in implementing the announced measures to improve productivity and the cost structure. The results of our efforts will already be clearly visible over the coming year.
“We are confident that we will reach our earnings targets for 2018 and 2020 despite the significant rise in macroeconomic risk factors in recent months due to trade disputes and currency fluctuations, for example.”