(RTTNews) – German logistics company DHL Group reported lower profits and revenue in the third quarter on Wednesday. Furthermore, the company lowered its earnings outlook for both fiscal 2023 and fiscal 2025. However, shares rose about 4 percent in morning trading in Germany.
CEO Tobias Meyer said: “Global trade has continued to normalize after the pandemic-related boom and the recovery of the global economy has so far failed to materialize, also against the backdrop of higher interest rates and geopolitical crises. We have planned different scenarios. and are therefore well on track to achieve our targets for the year.”
For the 2023 financial year, the company now expects EBIT of EUR 6.2 billion to EUR 6.6 billion, compared to the previously expected EUR 6.2 billion to EUR 7.0 billion, as a recovery in the global economy has not yet taken place .
In the event of a recovery at the end of the year, DHL expects an EBIT of approximately EUR 6.6 billion, and in the unfavorable event of no significant recovery of the global economy in the remainder of the financial year, an EBIT of at least EUR 6.2 billion. billion euros is expected.
For the DHL divisions, DHL Group expects EBIT between EUR 5.7 billion and EUR 6.1 billion, compared to previously expected EUR 5.7 billion to EUR 6.5 billion. For Post & Parcel Germany, the company still expects an EBIT between 800 million euros and 1.0 billion euros.
For 2025, DHL Group now expects an EBIT of between 7.0 and 8.0 billion euros, revised from previous expectations of more than 8.0 billion euros.
According to the company, continued weak global economic development and the normalization of freight transport after the pandemic-related boom of 2021 and 2022 also affected the third quarter.
In the third quarter, DHL Group reported a consolidated net profit of 807 million euros, down 33.9 percent from last year’s 1.22 billion euros. Earnings per share fell by 31.3 percent to 0.68 euros, compared to 0.99 euros a year ago.
Operating profit or EBIT amounted to 1.0 billion euros, a decrease of 32.4 percent compared to 2.03 billion euros last year.
Lower freight volumes and rates, as well as currency and fuel cost effects, impacted DHL’s operations.
Turnover amounted to 19.40 billion euros, a decrease of 19.3 percent compared to last year’s 24.0 billion euros. International revenues fell by 22.7 percent compared to last year’s 14.49 billion euros.
Express revenue of EUR 5.89 billion fell by 18.2 percent and Global Forwarding, Freight revenue of EUR 4.42 billion fell by 44 percent. E-commerce sales also fell by 0.8 percent.
These were partially offset by a 1.8 percent increase in Supply Chain revenue and 0.3 percent growth at Post & Parcel Germany.
In Germany, Deutsche Post shares traded at 38.55 euros, an increase of 3.82 percent.
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