DHL comes through global recession 'in good shape' - International Freighting Weekly - ifw-net.com

Deutsche Post DHL today said it had “successfully managed the repercussions of the economic crisis”, as it revealed its full-year figures for 2009.

CEO Frank Appel said: "Thanks to strict cost management and the consistent implementation of our Strategy 2015, we are now able to benefit over-proportionally from the accelerating global economic recovery."

DHL said it had been able to maintain “or even expand” its market share in the international air and ocean freight markets and in European road transport, although the decline in world trade levels resulted in double-digit decreases in transport volumes in the air and ocean freight markets.

It claimed marketing and sales efforts were proving increasingly successful, particularly in the areas of life science and consumer goods, and that due to the “initial economic recovery”, air freight volumes rose year-on-year for the first time in six quarters during the fourth quarter.

However, as a result of the general decline in freight volumes, lower fuel surcharges and reduced freight rates, revenues in this division were 23.3% lower year-on-year at €10.9bn (US14.8bn).

Despite the difficult market conditions, the group claimed its contract logistics business was able to further expand its market position in 2009.

“Two key reasons for this positive development were new business contracts worth €1.1bn and a continuing high contract-renewal rate of 90%,” it said.

However, revenues fell by 8.8% to €12.5bn, which it said “resulted from substantial negative currency translation effects and the company’s own decision to decline renewal of underperforming contracts or to terminate them prematurely”.

The group said its overall underlying ebit of €1.47bn surpassed the revised guidance of at least €1.35bn given in November, and said consolidated net profit of €644m was “considerably higher than in 2008”.

For 2010, Deutsche Post DHL expected a “moderate recovery in global transport volumes”, and underlying ebit to total between €1.6bn and €1.9bn.

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