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Deutsche Post DHL Q3 Profit Rises, Backs EBIT View For Years Ahead; Stock Up

dhl1 nov13 lt

Shares of Deutsche Post DHL Group (DPSGY.PK) were gaining around 4 percent in the morning trading in Germany after the package delivery and supply chain management company reported Tuesday significantly higher profit in its third quarter.

Looking ahead, the company anticipates a traditionally strong holiday season in the fourth quarter. The company also confirmed its earnings outlook for fiscal years 2019 and 2020, as well as the Strategy 2025 targets for the period until 2022.

For the current financial year, Deutsche Post DHL continues to expect to increase operating profit to between 4.0 billion euros and 4.3 billion euros. The company still projects Group EBIT at more than 5.0 billion euros next year and at a minimum of 5.3 billion euros in 2022.

CEO Frank Appel said, "We are growing even in uncertain times thanks to our broad portfolio and the market-leading position of all five of our divisions."

For the third quarter, consolidated net profit after non-controlling interests surged to 561 million euros from last year's 146 million euros.

Basic earnings per share improved to 0.45 euro from 0.12 euro a year ago.

Operating profit improved to 942 million euros from 376 million euros last year. The company said the prior-year figure was impacted by non-recurring expenses of 392 million euros at Post & Parcel Germany.

Group revenue increased 4.7 percent to 15.55 billion euros from 14.85 billion euros last year.

The company noted that all five divisions reported revenue and EBIT growth. The Post & Parcel Germany division posted a revenue increase of 5.5 percent with strong growth in parcel business, thanks to booming e-commerce.

In Germany, Deutsche Post DHL shares were trading at 34.18 euros, up 4.33 percent.

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