Deutsche Post Provides 2020 Outlook After 2Q Earnings Improve
July 07 2020 - 12:52PM
Dow Jones News
By Sarah Sloat
German logistics company Deutsche Post AG issued guidance for
2020 on Tuesday after second-quarter earnings rose despite the
coronavirus pandemic.
The company expects earnings before interest and taxes between
3.5 billion euros ($3.95 billion) and EUR3.8 billion for the year,
after second-quarter EBIT rose 16% to EUR890 million according to
preliminary data. The second-quarter figure includes an expected
negative impact of around EUR100 million to realign StreetScooter
activities and another EUR100 million burden from impairments
related to lockdown measures.
Volume development started to slowly recover in the second
quarter, the company said.
"In addition, since end of March the company has recorded a
positive development of shipment volumes driven by e-commerce, both
internationally and in the German parcel business," it said.
The company updated its 2022 outlook based on different
scenarios.
In the favorable case of a rapid recovery of the economy without
broad setbacks in the pandemic, Deutsche Post expects EBIT of more
than EUR5.3 billion. In case of a slower recovery, it expects EBIT
of about EUR 5.1 billion, and in the least favorable scenario of a
very slow development of the recovery, it forecast EBIT of about
EUR4.7 billion.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
July 07, 2020 12:37 ET (16:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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