Deutsche Post : DHL Group confirms earnings targets (May 27 2015)

For the Group, responsible business practices remain an important factor of economic success. As a logistics company, Deutsche Post DHL Group creates connectivity and enables global trade. "We provide services that no modern society can do without," said Frank Appel. "We are a part of this world. That's why we work to preserve and improve it."

To make a positive contribution to the environment and society, the Group applies its core competences with clear purpose. Deutsche Post DHL Group aims to improve the CO2 efficiency of both the company and its subcontractors by a total of 30% by 2020. Thanks, for example, to the use of new modern vehicles and aircrafts, the company has made substantial progress toward achieving that goal as of 2014. Against the base year of 2007, CO2 efficiency has improved by 23%.

In addition, Deutsche Post DHL Group continues to be committed to working with international educational and aid organizations such as Teach for All and SOS Children's Villages. DHL employees serving in DHL Disaster Response Teams (DRTs) apply their logistics experience and skills to help deal with the impact of catastrophes around the world. Since 2005, the teams have deployed on more than 30 occasions. Recently, they coordinated incoming relief supplies at the international airport in Nepal after the country's devastating earthquake.

CEO Appel was satisfied with the company's economic performance in financial year 2014. Group revenue climbed 3.1% year-on-year to EUR 56.6 billion, with all four divisions contributing to the rise. Consolidated revenue grew organically by 4.2% in 2014. Above all, this development reflects sustained growth in volumes and revenue in the international express business and the German parcel business. Consolidated EBIT rose 3.5% or EUR 100 million to EUR 2.97 billion. As a result, operating profit in full year 2014 was near the middle of the target range of EUR 2.9 billion to EUR 3.1 billion. The EBIT contribution from the Post - eCommerce - Parcel (PeP) division was EUR 1.3 billion, as forecast, while the DHL divisions contributed EBIT of EUR 2.02 billion.

Consolidated net profit in financial year 2014 fell slightly from EUR 2.09 billion to EUR 2.07 billion compared with the previous year, due to one-time effects included in the prior-year earnings and a higher tax rate of 15.5% (2013: 14.0%). Similarly, basic earnings per share declined from EUR 1.73 in the previous year to EUR 1.71. Taking all one-time effects into consideration, basic earnings per share would have been EUR 1.64 in 2013.

Given the solid earnings trend in financial year 2014 and their confidence in the Group's future prospects, the Board of Management and the Supervisory Board have proposed to today's Annual General Meeting a dividend of EUR 0.85 per share, which represents a 6% increase compared with the previous year. The proposed dividend corresponds to a payout ratio of 50% of net profits. The ratio is exactly in the middle of the announced 40-60% target range.

The agenda of this year's shareholders' meeting includes the proposed reelection of a Supervisory Board member. The term of office of Roland Oetker, Managing Partner of ROI Verwaltungsgesellschaft mbH, will end at the close of this year's Annual General Meeting. The Supervisory Board recommends that Mr. Oetker be reelected for another period of office as a shareholder representative.