* Says 2015 to be hit by one-off charges but EBIT to rise
* Q2 operating profit 654 mln euros vs Rtrs poll avg 628 mln
* Revenue up slightly at 13.7 bln euros vs poll avg 13.9 bln
* Confirms 2014 EBIT target, sees higher profits in 2016
* Shares rise 3.1 percent to top of blue-chip index
(Releads, adds analyst comment, division and 2016 details)
By Marilyn Gerlach
FRANKFURT, Aug 5 Deutsche Post beat
forecasts with a 5.7 percent increase in second-quarter profits
and said it would invest heavily in its parcel and logistics
business DHL, whose sales volume growth helped to boost
The world's No. 1 postal and logistics company, which went
public in 2000 and lost its German mail monopoly seven years
later, makes three-quarters of group revenues from DHL,
compensating for the decline in traditional letter deliveries.
The group has already been investing in a new IT platform at
its forwarding and freight business that allows customers to
track shipments and will spend more on it this year and next.
Finance chief Larry Rosen said the IT system, New Forwarding
Environment launched in 2012, would help standardise processes
and cut costs in the longer run because it allows the company to
fill contracts more quickly.
"That leads to savings and more transparency... it will help
customers know the status of their contracts," he said during a
conference call with reporters on Tuesday.
Deutsche Post will also make investments to restructure its
supply chain business, which provides warehousing and
distribution for customers like fashion groups Tom Tailor
and Zara, as well as for the automotive and aerospace
Shares in the group rose 3.1 percent to 23.98 euros at the
top of Germany's blue-chip DAX index by 1011 GMT.
Cantor Fitzgerald analyst Robin Byde reiterated his "buy"
recommendation on the stock, saying Deutsche Post was
attractively exposed to a general turnaround in global trade.
Europe's recovery, though still fragile, and continuing
economic growth in North America have increased trade flows and
helped boost the volume of goods shipped by Deutsche Post's DHL
division, comprising express courier delivery, freight
forwarding and supply chain services.
DHL contributed the bulk of quarterly earnings, with core
profit up 10 percent at 540 million euros.
Deutsche Post's performance joined a string of positive
earnings from European freight forwarders like Kuehne & Nagel
, Panalpina and Deutsche Bahn's
Schenker, which have reported higher shipments in rail, land,
air and ocean transport thanks to higher manufacturing activity.
Deutsche Post's international express rival United Parcel
Service Inc, the world's biggest courier company,
unveiled higher investments last week to boost capacity ahead of
the busy holiday shopping season. UPS also
slashed its earnings forecast for the year, having reported a
bigger-than-expected drop in quarterly profit.
Deutsche Post said investment at DHL would weigh on earnings
growth and scrapped its 2015 profit target.
The company did not provide specific guidance to replace its
previous outlook for 2015 core profit of 3.35-3.55 billion
euros, saying it still needed to determine how much it would
invest. It said it saw annual core profit rising to 3.4-3.7
billion euros in 2016.
Analysts in a Reuters poll on average see Deutsche Post's
core profit rising to just over 3 billion euros this year, about
3.4 billion next year and 3.7 billion in 2016.
Deutsche Post's second-quarter group core profit of 654
million euros, beat analysts' consensus forecast of 628 million
in a Reuters poll.
Its freight forwarding business reported a 21.3 percent drop
in operating profit to 100 million euros due to weaker
currencies in emerging markets and tough pricing competition.
($1 = 0.7467 Euros)
(Reporting by Marilyn Gerlach; Editing by Louise Heavens and