Deutsche Post reports profit drop

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The world's leading logistics and courrier company, Deutsche Post, reported on Tuesday a sharp drop in its first quarter net profit but also posted a better operational result.

Deutsche Post said its net profit plunged by 81.4 percent to 325 million euros ($465 million), compared with a 2010 first quarter that had been boosted by the sale of its Postbank unit to Deutsche Bank.

On the operating level, Deutsche Post sales gained 6.9 percent to 12.84 billion euros in the first three months of the year, while core earnings before interest and taxes (Ebit) were 22.9 percent higher at 629 million euros.

That was better than expected by analysts polled by Dow Jones Newswires, who had forecast 12.65 billion euros in sales and an Ebit of 586 million.

Deutsche Post's earnings got strong support from its DHL express service and other logistics activities that have been underpinned by the global economic recovery.

The group reiterated its 2011 operating profit target of between 2.2 and 2.4 billion euros.

© 2011 AFP

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