Deutsche Post World Net in 2006 increases revenues and earnings as expected02/22/2007, 03:00 PM CET
- 2006 forecast for Group EBIT fulfilled
- Deutsche Post CEO Zumwinkel: “Organic growth has priority”
- Proposed dividend for 2006: 75 cent per share
|€ m||2005 *||2006||%-change|
|t/o Financial Services||863||> 950||-|
- Prior-period amounts restated
Deutsche Post World Net completed the business year 2006 according to plan: With a 2.9 percent rise in EBIT to 3.87 billion euros, the Group met the forecast communicated to the capital markets. In the previous year, EBIT totaled 3.76 billion euros. Consolidated revenue grew by 35.8 percent to 60.5 billion euros. In 2005, it amounted to 44.6 billion euros excluding Exel, which was acquired in December of that year.
Management Board Chairman and Chief Executive Officer Klaus Zumwinkel expressed his satisfaction with the results: “We are now positioned exceptionally well. With sales exceeding 60 billion euros, we are the world leader in logistics and are able to reap the benefits of economies of scale. Now, organic growth will be our top priority.” Following the exemplary integration of Exel, the performance of the LOGISTICS division demonstrates the Group’s strong position as the world’s top logistics service provider, Zumwinkel added.
Deutsche Post World Net’s board of management proposes to increase the dividend for 2006 to 75 cents per share after 70 cents per share in the previous year.
In addition to a major rise in revenue and improved EBIT, the figures for the business year 2006 that were released today showed a decrease in consolidated net income of 14.3 percent to 1.92 billion euros. One reason for this decrease was that the Group reduced its stake in Postbank to 50 percent plus one share during the past year. As a result, a proportionately smaller share of net income is attributable to Deutsche Post stockholders. In 2005, net income after minorities totaled 2.24 billion euros. Earnings per share for the past fiscal year fell 19.6 percent to 1.60 euros. In the previous year, it was 1.99 euros.
In spite of competitive and substitution pressures, the traditional corporate division MAIL slightly increased its EBIT for 2006 from 2.03 billion euros in 2005 to 2.05 billion euros. The EXPRESS division is now on the right track following a loss of 23 million euros in 2005 and the now initiated turnaround in the U.S.: In 2006, EBIT totaled 325 million euros. Excluding costs for the new hub in Leipzig, which were moved forward to 2006, the result would have been higher by a mid-double-digit million euro amount. In the LOGISTICS corporate division, EBIT rose to 762 million euros, more than double the level of 346 million euros in 2005. FINANCIAL SERVICES also met the guidance of more than 950 million Euro EBIT. In the previous year, EBIT was 863 million euros.
“In three of four operative divisions, we exceeded our forecasts,” said Chief Financial Officer Edgar Ernst. “We were particularly strong at Postbank and in the logistics sector.” Ernst also pointed to the performance of the MAIL corporate division. “Our strategy of offsetting decreased mail revenues in the home market of Germany with increased international activities while cutting costs is working exactly as planned.” Today, Deutsche Post World Net is generating more than one-fifth of its MAIL revenues outside Germany.
The Annual Report 2006 with the full results will be published at the annual earnings press conference on March 20, 2007.