* Deutsche Post says now sees 2011 EBIT above 2.4 bln eur
* Sees EBIT continuing to rise in 2012
* Q3 EBIT 646 million euros, above poll average
* Asia-Pacific helped express delivery, supply chain
* Shares indicated 3.4 percent higher
By Maria Sheahan
FRANKFURT, Nov 9 Deutsche Post DHL
raised its 2011 outlook after robust Asian demand helped it beat
expectations for the third quarter, marking a bright spot in an
industry battered by soaring costs and a weakening global
"We are not ignoring the possibility that the economic
environment could get rougher, especially in developed
countries," Chief Executive Frank Appel said in a statement.
"But our early-warning systems have not given us any
indication that our business faces a worrisome slowdown."
Europe's biggest mail and express delivery company said it
now sees earnings before interest and tax (EBIT) exceeding 2.4
billion euros ($3.1 billion) this year, in line with a 2.41
billion euro average analyst estimate in a Reuters poll.
It had previously said it expected to reach the upper end of
its outlook range of 2.2-2.4 billion euros.
Deutsche Post shares are indicated to open 3.4 percent
higher with the German blue chip index seen up 1.8
"Even if the uncertain economic climate persists in 2012,
particularly in western economies, we believe that consolidated
EBIT will continue to rise based on our good earnings momentum,"
Deutsche Post said, sounding a much more positive note than its
Dutch rival TNT Express last week flagged further
cost cuts and said it would reduce its fleet on routes between
Asia and Europe because of economic uncertainty.
U.S. rivals UPS and FedEx are navigating the
slow-growing economy through increased pricing, technology
improvements and quickly fine-tuning their capacity, adding
seasonal workers when needed.
The World Trade Organization cut its forecast for growth of
2011 world trade to 5.8 percent in September, citing turmoil in
the global economy, and warned the final figure could be even
The latest forecast follows a major recovery in 2010, when
the volume of world trade jumped by 14.1 percent, bouncing back
from a big drop of 12.1 percent in the recession of 2009.
Deutsche Post, meanwhile, surprised with unexpectedly strong
quarterly results. Its third-quarter EBIT jumped 18.5 percent to
646 million euros, above consensus of 586 million.
Both its express delivery business and the supply chain
division -- two of its four core businesses -- benefited from
growth in the Asia-Pacific region.
Asia-Pacific, its fastest-growing market, contributed about
14 percent of group revenue in the quarter. Deutsche Post has
said it expects the proportion of sales generated in growth
markets, about a third now, to continue to expand.
The company has raised prices for express delivery in Asia
Pacific, the Middle East and Africa this year, partly to offset
rising fuel costs.
Deutsche Post also sent more express shipments with a
guaranteed delivery time -- the most profitable category --
driven by demand in Asia, where it is the No.1 player in that
business segment with a 36 percent market share.
Even in Europe, where the sovereign debt crisis has made
prospects for the region uncertain, Deutsche Post's revenues
rose by just over 3 percent, helped by German and Scandinavian
demand for overland freight transportation and new supply chain
business in Britain and eastern Europe.