DHL Owner Deutsche Post Sees Targets on Track After Earnings Drop

By Adria Calatayud

DHL owner Deutsche Post said it is on track to meet its targets for 2024 after earnings for the second quarter fell, hurt by subdued economic activity that weighed on global trade.

The German logistics group, also known as DHL Group, on Thursday reported net profit of 744 million euros, equivalent to $805.4 million, for the second quarter, compared with 978 million euros a year earlier.

Revenue increased 2.7% to 20.64 billion euros, with growth across all segments. Earnings before interest and taxes fell 20% to 1.35 billion euros, which the company said is in line with expectations amid a persistently weak economic environment.

Analysts had forecast the group to report net profit of 754 million euros, EBIT of 1.32 billion euros and revenue of 20.275 billion euros, according to consensus estimates compiled by Deutsche Post.

"Air and ocean freight volumes further improved in the second quarter from a low starting level. However, we are not observing a broad-based recovery of global trade yet," Chief Financial Officer Melanie Kreis said.

For the year, the company continues to expect EBIT of between 6 billion euros and 6.6 billion euros, an outlook that assumes it will benefit from an economic recovery and the peak season in the second half.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

August 01, 2024 01:22 ET (05:22 GMT)

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