Home Profit statement Deutsche Post on rise, to pay staff pandemic bonus

Deutsche Post on rise, to pay staff pandemic bonus

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An employee works at a distribution center of the German postal and logistics group Deutsche Post DHL in Rodgau near Frankfurt, Germany, December 19, 2019. REUTERS / Ralph Orlowski

  • Q2 EBIT more than doubled to € 2.075 billion
  • EBIT 2021 reaches more than 7 billion euros
  • EBIT 2023 at more than 7.4 billion euros
  • 550,000 employees will receive a bonus of 300 euros

BERLIN, July 7 (Reuters) – German logistics group Deutsche Post DHL (DPWGn.DE) on Wednesday raised its short- to medium-term profit outlook and announced it would pay staff another coronavirus bonus, predicting that the e-commerce boom driven by the pandemic would continue.

Deutsche Post, one of the world’s largest logistics companies, expects operating profit to rise to more than € 7 billion ($ 8.26 billion) in 2021, from a previous forecast of 6.7 billion euros.

It also raised its forecast for operating profit in 2023, forecasting it to rise to more than 7.4 billion euros, from an earlier forecast of more than 7 billion.

Preliminary second quarter earnings before interest and taxes (EBIT) more than doubled to € 2.075 billion.

“The second quarter has proven once again that the volume of global trade continues to recover and that the e-commerce boom is sustainable – and we are strongly benefiting from both,” Managing Director Frank Appel said in a statement.

Deutsche Post said it would pay another bonus of 300 euros to each of its 550,000 employees worldwide, at a cost of around 200 million euros, to be reserved in the third quarter. The figure is included in its new earnings outlook.

The company also paid its employees a bonus of 300 euros last year to reward their extra work during the pandemic.

Deutsche Post said consumer shipments were ahead of last year across all of its networks, as business-to-business traffic continued to gain momentum. He said he still faces capacity constraints in air and sea freight.

Shares of US rival United Parcel Service Inc (UPS.N) fell last month as the company forecast disappointing post-pandemic US margins. Read more

Deutsche Post is due to release its full second quarter results on August 5.

($ 1 = € 0.8473)

Reporting by Riham Alkousaa, editing by Emma Thomasson and Barbara Lewis

Our Standards: Thomson Reuters Trust Principles.


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