DHL Owner Deutsche Post Sees Earnings at Lower End of Guidance

By Adria Calatayud

DHL owner Deutsche Post narrowed its 2023 guidance toward the lower end of its previous outlook, after its expectations of an economic recovery didn't materialize, and reported lower third-quarter revenue and earnings.

The German logistics group, also known as DHL Group, said it now expects earnings before interest and taxes to be between 6.2 billion euros and 6.6 billion euros ($6.63 billion-$7.06 billion), against its previous target of EUR6.2 billion to EUR7.0 billion.

The company also lowered its EBIT target for 2025 to be between EUR7.0 billion and EUR8.0 billion, down from more than EUR8 billion previously.

"The recovery of the global economy has failed to materialize so far," Chief Executive Tobias Meyer said.

For the third quarter, the company reported a net profit of EUR807 million, down 34% on year, on revenue that dropped 19% to EUR19.40 billion, dragged by sharp falls in its express and global forwarding segments.

EBIT for the quarter fell 32% to EUR1.37 billion, the company said.

Analysts had expected an EBIT of EUR1.375 billion on revenue of EUR20.845 billion, according to consensus estimates provided by the company.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

November 08, 2023 01:40 ET (06:40 GMT)

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