Frankfurt (Germany), Nov 6 (EFE) – The German postal and express services company Deutsche Post DHL reduced its attributed net profit by 32.7% to September to 1,262 million euros compared to the same period of 2017, by September Restructuring expenses in the letter division and package delivery.
Deutsche Post DHL reported today that the net profit fell in the third quarter 77.2%, to 146 million euros.
The company has implemented measures to improve the profitability of its letter and parcel delivery division, which have weighed the benefit in the third quarter, as the payment of indemnities to civil servants employees to retire them early.
Deutsche Post DHL accounted for extraordinary expenses in the third quarter for 392 million euros and in the second quarter for 51 million euros for the restructuring measures for a total value of 500 million euros.
It also spent 45 million euros in the third quarter of the total annual investment of 150 million euros to increase productivity.
The company reviewed its profit forecast for 2018 at the beginning of June and announced measures to increase productivity and improve costs in this e-commerce letter and package division, which generated some expenses in the third quarter.
However, the CEO of Deutsche Post DHL, Frank Appel, was confident today of being able to achieve the new objectives established for 2018 and 2020 when presenting the results.
Appel warned that macroeconomic risk factors have increased significantly due to trade conflicts and fluctuations in exchange rates.
The operating profit fell between 20.8% between January and September, to 2,028 million euros.
The letters and parcels division suffered an operating loss of 209 million euros in the third quarter, compared to the profit of 307 million euros a year earlier.
The accumulated result in the first nine months of this division was 290 million euros (-70.8%), while the rapid courier DHL had until September an operating profit of 2,003 million euros (+12.5 %).
The group's turnover remained practically stable in the first three quarters at 44,624 million euros (+0.7%).
Deutsche Post DHL had at the end of September a debt of 13,518 million euros (1,938 million euros a year earlier).
The company forecast an operating profit of 3,200 million euros in 2018 in June, a billion euros less than it had previously forecast.
For 2020 Deutsche Post DHL expects an operating profit of more than 5,000 million euros.
Deutsche Post DHL will modify its structure from January 1 and the letters and parcels division will be distributed in separate divisions for the German and international business, a change that will have an effect on the result of the first quarter of 2019.