UPDATE 3-Deutsche Post ups 2009 outlook on swift cost cuts
* Sees 2009 adjusted EBIT of at least 1.35 billion euros
* Previous target was 1.2 billion euros
* Q3 core EBIT 947 million euros, vs forecast 341 million
* CEO says things looking up but too early to celebrate
* Shares down 0.2 percent
(Adds detail, analyst comment)
FRANKFURT, Nov 5 (Reuters) - Deutsche Post DHL (DPWGn.DE) raised its 2009 outlook when posting third-quarter earnings that beat forecasts, saying on Thursday cost cuts were helping offset stubbornly weak volumes.
Europe's biggest mail and express delivery company has shrunk its cost base by shutting down its loss-making domestic DHL express unit in the United States and spending less on advertising and consulting.
"We are confident that we can raise our guidance for the rest of the year based on the hard work we have done inside our company," chief executive Frank Appel told Reuters TV.
Deutsche Post said it did not foresee a significant pick-up in shipping volumes during the rest of this year as there had so far been only a very slight volume recovery.
Third-quarter adjusted EBIT fell 31 percent to 947 million euros, well above the 341 million average estimate in a Reuters poll. [ID:nLT56082]
As a result, it now expects 2009 adjusted earnings before interest and tax (EBIT) of at least 1.35 billion euros ($2 billion), compared with a previous outlook of 1.2 billion, as it reaches its annual savings target of 1 billion euros by year-end, months earlier than originally expected.
"There is light at the end of the tunnel, but it is too early to celebrate. So we will remain focused on keeping our costs under control," Appel said.
Sluggish consumer spending and shrinking business investing have hurt shippers around the world this year. The World Trade Organisation has forecast 2009 global trade volumes will contract 10 percent, the sharpest decline since World War Two.
U.S. competitor FedEx Corp (FDX.N), which reports full-year earnings on Dec. 17, has said there were signs the economy was stabilising, while United Parcel Service Inc (UPS.N) has said the outlook for the holiday season remained uncertain. Continued...
