Deutsche Post AG reported 5.7% EBIT growth in Q4 2015 to 957 million USD, exceeding analysts forecasts. This is the highest quarterly profit for the company, excluding the results of the bank Postbank, which business is under its management. The earnings of the transportation and logistics division increased following the growth of the volume of goods transported in Germany by 9.4%. Operating profit of DHL’s Express unit dropped by 8.3% on the quarter after registered other costs of 66 million EUR, but division succeeded to increase annual profit by 10%. For 2015, the earnings before interest and taxes decreased by 19% to 2.41 billion EUR, but the result coincided with the forecasts of the company.
Deutsche Post AG will allocate more than 2 billion EUR to shareholders, after reporting record operating profit in the fourth quarter of 2015. The German company, which owns the logistic brand DHL, will remain the dividend to shareholders of 0.85 EUR per share, representing cost of 1.03 billion EUR. In addition, the Deutsche Post will buy-back share for 1 billion EUR.
For 2016, the outlook of Deutsche Post is for EBIT in range 3.4-3.7 billion EUR.
The CEO of Deutsche Post, Frank Appel, is trying to win back the investor’s confidence after the leading postal operator in Germany dropped twice the forecast for profit in 2015, because of failed software project in the division to divert cargo and a series of strikes by providers in Germany. According to Appel these are one-time problems and he promised that profits will improve by at least 1 billion EUR during this year.