Deutsche Post DHL is considering some restructuring with different approach on freight forwarding business. The decision followed low profit results in the first-quarter of 2015.
Talking number before interest and tax, we are looking into slightly slower results in comparison to the same period of time in 2014. 727 million euros in comparison to 720 this year.
Frank Appel (the German chief executive) was trying to remain still: “We saw relatively moderate beginning this year which we expected to happen”.
Profit went from 49 million euros town to 17 million euros. Restructuring cost played largest part right next to ongoing margin pressure.
It is interesting that ocean freight grew almost 3%, which means 704,000 TEU which boosted revenue over 12% to 939 million euros. Air freight volume did not have significant changes.
New management is about to step in current weak performance and try to develop better freight forwarding business.
The results of the review will determine the company’s further approach, Deutsche Post said.
Supply chain profit declined to 53 million euros from 85 million euros, largely because of one-off costs, while revenue grew 12.4 percent to 3.9 billion euros.
Looking further in details, supply chain also went down from 85 million euros to 53 million euros.
The expectation are to hit its target for 2015 which is realistically something slightly over 3 billion euros.