Restructuring costs burden Deutsche Post in 2018

Berlin: German logistics group Deutsche Post DHL said on Thursday that net profits fell sharply in 2018, a year marked by headwinds for its postal arm that implemented a far-reaching restructuring.
Bosses in Bonn said last summer that they would reorganise the postal unit to tackle the long-term decline in traditional post and the surging growth in package deliveries stoked by online shopping.
Pointing to a “short-term burden” on operating, or underlying profit from the restructuring, chief executive Frank Appel nevertheless judged that “we have thus created the conditions for reaching our 2020 targets”.
Last year net profit across Deutsche Post fell 23.5 per cent, to 2.1 billion euros ($2.4 billion).
Underlying profit fell less sharply, shedding 15.5 per cent to 3.2 billion euros, while revenues were up 1.8 per cent at 61.5 billion.
Although profits fell even faster in the fourth quarter last year, Deutsche Post was confident enough for 2019 to raise its target for operating profit.
The group now expects to make between 3.9 and 4.3 billion euros before interest and taxes this year. — AFP