BONN (dpa-AFX) - Deutsche Post DHL Group (DPSGY.PK) reported that its fourth-quarter consolidated net profit after non-controlling interests decreased by 2.9% to 813 million euros from the previous year, mainly as a result of the lower EBIT at PeP and the implementation of IFRS 16. But, earnings per share rose to 0.65 euros from 0.64 euros in the prior year.
'We have thus created the conditions for reaching our 2020 targets and for continuing to grow profitably in the years thereafter,' said Frank Appel, CEO of Deutsche Post DHL Group.
Operating profit for the fourth-quarter declined by 4.0% to 1.1 billion euros from last year, due above all to restructuring costs at PeP.
Total group revenue for the quarter increased 5.1% to 16.9 billion euros. All four divisions contributed to the improvement in revenue.
For financial year 2018, the Board of Management and Supervisory Board will propose an unchanged dividend of 1.15 euros per share to the Annual General Meeting on 15 May.
Deutsche Post DHL Group projects an increase in operating profit to 3.9 billion euros to 4.3 billion euro in 2019. Structural and operating improvements in all Group divisions are expected to contribute to the increase. The measures initiated to raise profitability in the German post and parcel business are expected to be one of the main factors having a notably positive impact on earnings in the current financial year.
Among the measures implemented were the changes made to the structure of Deutsche Post DHL Group effective 1 January 2019. The previous Post - eCommerce - Parcel (PeP) division was split into two separate divisions: The new Post und Paket Deutschland (P&P) division focuses on the mail and parcel business in the domestic market, while the Group's international parcel and e-commerce activities have been combined to form the new DHL eCommerce Solutions division.
The P&P division is expected to contribute between 1.0 billion euros to 1.3 billion euro to the Group's projected EBIT for 2019. In the DHL divisions, of which there are now four (Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions), the Group anticipates total EBIT to grow to 3.4 billion euros to 3.5 billion euros. Group EBIT is projected to rise to at least EUR 5.0 billion in 2020.
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