Deutsche Post Raises 2020 Guidance on Preliminary 3Q Results

   By Joshua Kirby 
 

Deutsche Post AG raised its guidance for 2020 earnings Wednesday on the back of preliminary results showing increased earnings in the third quarter.

Full-year earnings before interest and tax are now expected to be between 4.1 billion and 4.4 billion euros ($4.8 billion-$5.2 billion) compared with EUR3.5 billion-EUR3.8 billion previously, the German package-delivery company said.

EBIT at the group's Post and Parcel Germany unit is still expected to be around EUR1.5 billion, the company said, while EBIT at the DHL divisions is now forecast in a range between EUR3.3 billion and EUR3.6 billion, from EUR2.8 billion-EUR3.1 billion previously.

Gross capital expenditure is still seen at around EUR2.9 billion, while the forecast for free cash flow has been raised to more than EUR1.8 billion from around EUR1.4 billion previously.

The increased guidance is based on preliminary results that show group EBIT at EUR1.37 billion for the third quarter, up from EUR942 million in the same quarter last year. The result includes the effect of a one-off bonus of EUR300 to each of the group's more-than 500,000 employees, the company said.

Free cash flow increased to more than EUR1.0 billion in the quarter according to the preliminary results, from EUR507 million last year, Deutsche Post said.

Deutsche Post is set to release comprehensive third-quarter results on Nov. 10.

Write to Joshua Kirby at [e-mail]

(END) Dow Jones Newswires

October 07, 2020 10:22 ET (14:22 GMT)

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