DHL Supply Chain doubled the volume of new contracts won in the first quarter of 2013. Contract signed with new and existing customers totalled €430m.
However, the division’s EBIT fell from €92m in the first quarter of 2012 to €84m this year as a result of insolvency proceedings involving a customer in the United States.
The group said that adjusted for this effect, “the division’s operating earnings would have been slightly above the previous year’s level thanks to optimised contract management and successful business performance in the Americas and Asia-Pacific regions”.
Supply chain sales were up two per cent to €3.5bn for the quarter, fuelled by a double-digit revenue increase in the Asia-Pacific region.
Sales were down some two per cent in in the Global Forwarding, Freight division to €3.6bn as a result of the difficult business environment. There was a significant drop in demand in the technology and engineering & manufacturing sectors. On the other hand, volume and revenues rose in ocean freight, largely due to increased demand on north-south routes and within Asia. Operating profit rose by €1m to €88m.
Operating profit in the Express division was up nearly ten per cent to €254m on sales up marginally on last year. The group said it was the growth in the time definite international product line, up ten per cent on last year, that had driven profits growth.
Overall, group EBIT was up €20m on last year at €711m, while sales were up 0.6 per cent to €13.4bn.
“Even though we have yet to feel any sort of economic tailwind, we were able to get off to a solid start in the new year. In doing so, we demonstrated once again just how robust our business model is and lived up to our position as market leader,” said chief executive officer Frank Appel.
The group expects the world’s economy to generate moderate growth in 2013 and is looking for EBIT to increase to between €2.7bn and €2.95bn.
Contract wins double at DHL Supply Chain
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