DHL profit plunges 71 per cent, outlook uncertain

Depressed revenue and bad debts pushed profit in the second quarter down 71 per cent for The world’s biggest logistics company as Deutsche Post DHL warned of tough market conditions going forward. Profit plunged to US$93.7 million from $328 million a year ago. Mail, express, freight forwarding and contract logistics revenue all shrank by nearly […]


Deutsche Post DHL DHL financial results Frank Appel recession


Depressed revenue and bad debts pushed profit in the second quarter down 71 per cent for The world’s biggest logistics company as Deutsche Post DHL warned of tough market conditions going forward. Profit plunged to US$93.7 million from $328 million a year ago. Mail, express, freight forwarding and contract logistics revenue all shrank by nearly 18 per cent to $15.8 billion. Operating income fell by a lower-than-expected 38 per cent to $392 million, aided by cost cutting. The Bonn-based company, which ceased domestic express deliveries in the US in January after substantial losses, forecast full year profit of $1.7 billion compared with $3.42 billion in 2008. The earnings forecast “is built on the assumption we won’t see a substantial improvement of global trade in coming months,” said CEO Frank Appel.