FRANKFURT (Reuters) - Deutsche Post (DPWGn.DE) missed expectations for quarterly operating profit, after costs at its Mail business rose while its home market Germany was hit by Europe’s debt crisis.
“We will reach our target for the year,” chief executive Frank Appel said on Thursday. “Of course we too see and feel the effects of the generally slowing economy. But we have been able to deal with them very well thus far.”
Europe’s biggest express delivery and mail company said on Thursday third-quarter earnings before interest and tax (EBIT) fell 6.5 percent to 604 million euros ($770 million), compared with a forecast for 648 million in a Reuters poll.
Revenue rose 5.7 percent to 13.84 billion euros, against a 13.59 billion forecast.
Some of Deutsche Post’s competitors have lowered guidance, with European logistics rivals Kuehne&Nagel KNIN.VX and Panalpina (PWTN.S) reporting weak volumes in air freight and ocean cargo amid reduced trade between Asia and Europe.
Deutsche Post, which generates 30 percent of revenues from Germany, said quarterly operating profit fell because of seasonal factors at its Mail division, which implemented a 4 percent wage rise during the period.
Deutsche Post, which raised its profit guidance in August, said it continued to expect 2012 EBIT of 2.6-2.7 billion euros, compared with 2.44 billion last year. It also confirmed a target to grow operating profit to 3.35-3.55 billion euros by 2015.
Reporting By Marilyn Gerlach; Editing by Dan Lalor