Deutsche Post DHL Group, the world's leading mail and logistics company, has taken further steps in recent months to position its business units for long-term success in line with its Group Strategy 2020. This has significantly impacted earnings in the second quarter of 2015. The Post - eCommerce - Parcel division was able to reach a sustainable wage agreement that lays the foundations for long-term growth in the German parcel business, despite the one-off earnings impact of strike activities that resulted in a EUR 100 million reduction of EBIT in the second quarter. As a result of the unsatisfactory earnings development in Global Forwarding, Freight, the management team has initiated a comprehensive turnaround program with restructuring measures.

The Supply Chain division, supported by positive one-time effects, was able to accelerate its planned optimization program. The Express division has continued its outstanding revenue and earnings development in the second quarter, further improving its operating margin to a historical record high for the division of 10.9%. In order to further strengthen this position as part of Strategy 2020, the division continued to invest significantly in its already comprehensive network.   

These combined effects contributed to a decline of Group EBIT in the second quarter of 18.1% to EUR 537 million (2014: EUR 656 million). To reflect the one-off earnings impact of EUR 100 million from the strike in the second quarter, Deutsche Post DHL Group has adjusted its 2015 guidance accordingly, with the EBIT for the full year now expected to reach between EUR 2.95 billion and EUR 3.1 billion. The previous forecast had been for Group EBIT between EUR 3.05 billion and EUR 3.2 billion.

Group revenue in the period between April and June, including positive currency effects, grew by 7.3% to EUR 14.7 billion (2014: EUR 13.7 billion). Adjusted for these effects, organic revenue was 0.6% higher than the prior year period. While the international express and e-commerce-fuelled parcel businesses continued to develop dynamically, stronger Group revenue growth was held back by declines in the Post segment, mainly due to the strike action, as well as lower fuel surcharges in the DHL divisions.

"After the successful execution of Strategy 2015, the current year represents a year of transition. In the second quarter we worked very hard and took important steps towards the successful implementation of our Strategy 2020. With that, we want to ensure the long-term, profitable growth of the Group. To achieve this, we have recorded some short-term impact on our results. At the same time, we are convinced that these measures will contribute to accelerated earnings growth in the next year and enable us to achieve all our targets set for 2016 and beyond," said Frank Appel, CEO, Deutsche Post DHL Group.

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Source: Deutsche Post DHL