Deutsche Post hikes financial year outlook after second quarter profit rise
FRANKFURT (Reuters) - Deutsche Post (DPWGn.DE), the world's biggest mail and logistics company, raised its full-year profit guidance slightly after second-quarter operating profit increased in line with expectations.
Deutsche Post said on Tuesday it now expects earnings before interest and tax (EBIT) at between 2.75-3.0 billion euros ($3.64-$3.97 billion) this year, reflected special effects in its mail division.
It said Mail would contribute 1.15-1.25 billion to annual earnings, or some 50 million more than previously expected due to the release of a provision booked last year.
Second quarter EBIT gained 14 percent at 619 million euros while sales slipped 0.6 percent to 13.65 billion euros.
The average in a Reuters poll of analysts was EBIT growth of 14.2 percent at 620 million euros ($820.47 million) and a 2.7 percent rise in revenues at 14.058 billion.
The mail division, whose business of selling stamps and delivering letters has been hit by electronic mail, posted a quarterly profit of 223 million euros, compared with 38 million euros last year, largely due to the absence of last year's 151 million euros one-off payment for value-added tax.
($1 = 0.7553 euros)
(Reporting by Marilyn Gerlach, editing by Christiaan Hetzner)
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