Deutsche Post profits stable

In the first three months of 2013, Deutsche PostDHL revenues rose 0.6 percent to 13.44 billion euros ($17.4 billion), according to a first-quarter earnings report released by the German postal and logistics company Tuesday.

However, compared with the same quarter a year ago net profit fell to 498 million euros from 529 million euros, the firm said, which was the result of the year-earlier figure being inflated by one-off gains to the tune of 186 million euros from the sale of its Postbank banking unit.

Describing the firm's business environment as challenging in the first three months of the 2013, Deutsche PostDHL Chief Executive Frank Appel said the company could built on its successful performance of last year and got off to solid start in the new year.

Deutsche PostDHL air freight revenue fell 8.2 percent to 1.2 billion euros, the firm said, as sluggish global economic growth had caused customers to use cheaper sea transport. However, revenue at its DHL express delivery business was increasing, notably in Asian market. In addition, its parcel service had benefited strongly from the boom in e-commerce.

Looking ahead to the full year, Deutsche PostDHL said it expected operating profit to increase to between 2.7 and 2.95 billion euros and consolidated net profit to grow in line with this figure.

The German company's main global rival, US-based United Parcel Service (UPS) was also able to boost its revenues in the first quarter of 2013. However, Dutch-based competitor TNT earned less at the beginning of 2013, stressing that logistics and delivery markets especially in Europe would remain difficult for the whole of 2013.

uhe (dpa, AFP, Reuters)