Ad hoc: Deutsche Post DHL Group defines Forwarding IT renewal path and addresses potential earnings exposure to ensure success of Strategy 2020
The management board of Deutsche Post AG has today decided on the further course of its IT renewal plan for the Global Forwarding business unit.
Given the decreased likelihood that DHL Global Forwarding will be able to realize benefits from the New Forwarding Environment (NFE) system in its current state, the Group will recognize in the result of the first nine months of 2015 one-off effects of a total of EUR 345 million, comprising a write-down of EUR 308 million of assets capitalized in relation to NFE and EUR 37 million of provisions which cover expenses for an expected roll back of NFE in the countries where it was piloted.
In addition the management board decided to address potential earnings exposure by recognizing in its outlook for 2015 further one-off effects of around EUR 200 million. This exposure relates mainly to the current reassessment of legal and regulatory aspects in the Post - eCommerce - Parcel (PeP), Express and Global Forwarding, Freight divisions.
Including the above described effects, the management board expects in 2015 the consolidated EBIT to reach at least EUR 2.4 billion. The PeP division is likely to contribute at least EUR 1.1 billion to this figure while the DHL divisions are expected to reach at least EUR 1.65 billion. The Corporate Center /Other result is projected to remain at around EUR -0.35 billion.
The earnings forecast for 2016 is not affected by the named measures: consolidated EBIT is expected to reach between EUR 3.4 billion and EUR 3.7 billion in 2016. The PeP division is likely to account for more than EUR 1.3 billion of this and the earnings contribution of the DHL divisions is forecasted to range from EUR 2.45 billion to EUR 2.75 billion.