Deutsche Post World Net plans group EBIT of at least 5 billion Euros by 200902/15/2006, 12:00 AM CET
- EBIT guidance of at least 3.7 billion Euros exceeded in full-year 2005
- Impairment loss on goodwill of 434 million Euros on EXPRESS Americas region
- Plan to achieve group EBIT of at least 5 billion Euros by 2009
Full-year 2005 figures
|in million euros||2004 EBITA (restated)||2004 EBIT (restated)||Guidance (vs 2004 EBITA)||2005||In % vs. |
|In % vs. |
|3,371||3,001||At least € 3.7bn||3,755||11.4%||25.1%|
|2,085||2,072||Stable at € 2bn||2,030||-2.6%||-2.0%|
|373||117||Around € 500m||11||-97.1%||-90.6%|
Earning per share
Deutsche Post World recorded an increase in group revenue by 3.3% to 44.594 million Euro.
Profit from operating activities (EBIT) rose by 25.1% to 3,755 million Euros and thus slightly overachieved guidance of at least 3.7 billion Euro provided in December 2005. It is important to note that this result includes an impairment loss on goodwill of 434 million Euro on DHL´s EXPRESS business in the Americas region. This has been countered by a reversal of a health care provision relating to a change in governance and financing structure for the Postal Civil Service Health Care Insurance fund.
On a divisional level, the MAIL division managed to keep EBIT stable at 2,030 million Euro level, on par with the high level of the previous year. The successful expansion of our international mail business enabled us to more than offset the expected fall in domestic revenue.
The EXPRESS corporate division generated an EBIT of 11 million Euros (2004: 117 million Euro). This reflects a decrease versus the comparable 2004 figure (EBITA) of 97.1% (373 million Euro). Please keep in mind that it is here where the above mentioned impairment loss on goodwill of 434 million Euros is to find. Excluding this, the operating result slightly underachieved the expectations of around 500 million Euro.
LOGISTICS continued its positive development in 2005. EBIT increased to 315 million Euro, which reflects an increase of 73.1% versus 2004 EBIT of 182 million Euro and 12.1% versus comparable figures (EBITA) of 281 million Euro in 2004.
FINANCIAL SERVICES will also at least meet the guidance of a 10% increase in EBIT.
Group net income rose by 39.9% to 2,235 million Euro (1.99 Euro per share). That compares to 1,598 million Euro (1.44 Euro per share) in 2004. Accordingly, management sticks to the intension to increase dividend distributed for 2005 by at least one-third.
|Group||at least € 5bn|
|t/o MAIL||max. risk of 10-20% (vs. € 2bn)|
|t/o EXPRESS||at least € 1bn|
|t/o LOGISTICS||at least € 1bn|
|t/o FINANCIAL SERVICES||at least € 1bn|
Deutsche Post World Net´s management plans to increase group EBIT to at least 5 billion Euro by 2009.
For the MAIL division, we expect EBIT to remain stable at the 2 billion Euro level until 2007. Afterwards, we see a maximum risk to this target of 10-20% for the years until 2009.
The company plans an EBIT of at least 1 billion Euro for the EXPRESS division by 2009. The focus in the Europe region is on integrating and building up the European networks. After this has been finalized, the business will capture on the then existing state-of-the-art and unique network. The region EXPRESS Americas will continue its path towards break-even in the coming years. We change our practice here and stop reporting the EBIT for the region separately for competitive reasons. The Asia/ Pacific region is expected to deliver ongoing strong double-digit growth.
Management is confident that LOGSITICS will integrate EXEL successfully and that the combined business will continue its positive trends. The EXEL transaction is expected to generate annual pre-tax cost synergies of approximately 220 million Euros by 2008. Additionally, the transaction is expected to be modestly earnings enhancing pre integration cost in the current year and earnings enhancing in the second year after integration costs. We plan an EBIT of at least 1 billion Euro for the division by 2009.
The company expects the division FINANCIAL SERVICES to continue its growth path. The planned EBIT for the division is at least 1 billion Euro by 2009.
On March 14, 2006, Deutsche Post World Net will disclose details about the new corporate program. Additionally, on this day we will release the 2005 annual report including the detailed accounts.