Higher Rates Help Parent Company DHL to Make a Profit

Price increases have resulted in a significantly higher profit for logistics group Deutsche Post DHL in the third quarter.

 

The German company posted a net profit of 1.2 billion euros, compared to 908 million euros a year earlier. Globally, much more was traded than in the same period last year; as a result, turnover increased by about 24 percent to more than 20 billion euros.

Higher costs were due, among other things, to more expensive materials, such as cardboard and additional personnel costs. As a result, Deutsche Post DHL had to hire more staff and paid a one-time bonus of 300 euros per employee.

International freight transport, in particular, yielded more. However, partly due to shortages of containers, bottlenecks have arisen in international logistics chains.

In addition, congestion has developed in important ports. DHL doubled the revenues from freight transport by ship. In addition, the German company can use its own aircraft for freight transport, which yielded more than half more than a year earlier. The parcel service also continued to grow.

Deutsche Post DHL is now looking more positively at full-year results. The company previously assumed that profit before tax and interest would amount to 7 billion euros. Now the company expects an operating profit of 7.7 billion euros.

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