EU and US could reach trade deal this weekend - Reuters
Investing.com -- DHL Group (ETR:DHLn) reported better-than-expected first-quarter earnings, with improved margins in its express and post & parcel Germany divisions helping offset weakness in freight, sending its shares up by over 3% on Wednesday.
Operating profit rose 4% year-over-year to €1.37 billion, topping both Morgan Stanley (NYSE:MS) and consensus estimates.
Net profit increased 6% to €786 million, and earnings per share rose 8% to €0.68. Group revenue was flat at €20.81 billion, in line with consensus.
The express unit posted EBIT of €662 million, up 5% from a year earlier. The segment benefited from cost control measures and stable B2B volumes, despite a 7% decline in daily shipment counts.
Post & parcel Germany saw EBIT jump 45% to €281 million, driven by improved mail volumes tied to national elections and supported by expectations for regulated price increases in 2025.
The Global Forwarding, Freight division reported a 23% drop in EBIT to €202 million, hit by soft demand in European road freight. Ocean freight volumes were up slightly, but air volumes declined 3%.
Supply chain earnings rose 5% to €268 million, supported by growth in the healthcare and life sciences sectors. New contract wins totaled €735 million.
The eCommerce division saw an 8% rise in revenue to €1.76 billion, though EBIT fell 13% to €52 million due to increased depreciation tied to ongoing investment.
The company maintained its full-year EBIT guidance of more than €6 billion. Morgan Stanley estimates EBIT will reach €6.2 billion, slightly below the €6.3 billion consensus.
Free cash flow rose 14% to €692 million, though that fell short of Morgan Stanley’s forecast.
Morgan Stanley noted that the group’s efforts to manage costs and its relatively balanced trade exposure are positive signs in a mixed global demand environment.