FRANKFURT, Jan 14 (Reuters) - Germany’s Deutsche Post expects that 2013 will “not be easy” as a weak global economy weighs on demand for express delivery and other logistics services.
“Economic volatility is likely to remain high,” finance chief Larry Rosen said at an investor event in New York on Monday, but added that Deutsche Post was nonetheless well placed to expand its position in the market this year.
Europe’s biggest mail and express delivery company is expected to provide a more specific outlook for the year when it publishes its full-year 2012 financial results on March 5.
Rosen indicated Deutsche Post reached its 2012 target for an operating profit of 2.6-2.7 billion euros ($3.5-$3.6 billion), saying he was “very satisfied” with the year just ended.
Package deliveries reached a record level during the Christmas season, exceeding 7 million shipments per day for the first time as more consumers ordered Christmas gifts over the internet, Rosen said.
He said he saw the package market growing by 5-7 percent a year through 2020 as e-commerce’s share of overall consumption rises toward 20 percent from 7 percent now.
Rosen also said Deutsche Post should still be able to reach its goal of raising its group earnings before interest and tax (EBIT) to between 3.35 billion and 3.55 billion in 2015.
“We are fully on track,” he said. ($1 = 0.7493 euros) (Reporting Matthias Inverardi; Writing by Maria Sheahan)