Deutsche Post Provides 2020 Outlook After 2Q Earnings Improve

   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 [e-mail]

(END) Dow Jones Newswires

July 07, 2020 12:37 ET (16:37 GMT)

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