Tuesday, November 23, 2010

German Logistics Giant Declares Profit Intentions

Deutsche Post DHL Aims for Market Domination
Shipping News Feature

GERMANY – Never ones to undersell themselves Deutsche Post DHL have announced their intentions to dominate both mail and freight markets at a Frankfurt conference and to increase its profitability whilst doing so. The DHL divisions expect to make a €1.3 billion operating profit in the current financial year which the group says will produce earnings before interest and taxes of 13 to 15% up to 2015.

The group spread themselves across several niche shipping sectors and with mail earnings expected to stabilize DP DHL anticipate a growth of around 7% in express freight, 6 to 8% in global air and ocean freight forwarding and between 8 and 9% for the supply chain division over the next few years.

Frank Appel, the CEO of Deutsche Post DHL, told gathered investors and analysts that in recent years the company strategy of enhancing efficiency had laid a strong foundation in future focus will be directed toward generating growth in terms of both earnings and revenues. To achieve its goals, the Group will invest in an array of strategic initiatives over the next few years including the development of new products and extending the range of clients.

Digital age products as the E-Postbrief or the shopping portal "Mein Paket" would stabilize mail revenues as traditional mail quantities and income decline with the goal of remaining the postal service for Germany and becoming the logistics service provider for the world. More attention would be given to specific market sectors particularly the Life Sciences & Healthcare, Technology and Energy industries.

Photo: CEO Frank Appel with a company hybrid truck.