While overall revenue and earnings were up if exchange rates are considered, Deutsche Post DHL posted a decline of 6.3 percent in revenue for its Global Forwarding, Freight division during the second quarter.
The company said that adjusted for exchange-rate effects, the decrease would have been slightly lower at about 4 percent. Volume and revenues in airfreight fell below the 2012 level primarily due to week demand in the “technology” and engineering and manufacturing” sectors.
Deutsche Post DHL also said that volume and revenues decreased in oceanfreight during the past quarter. This resulted largely from weaker demand on traditional east-west trade lanes. In contrast, demand on north-south routes and within continents rose. Small revenue gains were achieved in European overland transport. The company said that thanks to a selective market strategy and continued strict cost controls, the division’s operating margin remained stable despite the decline in revenues. Operating earnings in the division totaled EUR 129 million (U.S.$172 million) in the second quarter.
Overall, Deutsche Post DHL said that revenue, adjusted for negative exchange rates, increased nearly 2 percent over the same period last year.
“Given the economic challenges we continue to face, we can be satisfied with our solid performance in the second quarter,” said Frank Appel, CEO of Deutsche Post DHL. “Our strength in the international express business and in Germany’s parcel market has paid off once again in the past few months. Our focus on cash flow generation is also increasingly bearing fruit.”