German transport and logistics giant Deutsche Post DHL released its official results for the third quarter on Tuesday, with revenue up 20% yoy (y/y) to $23.9 billion and earnings before interest and taxes of $2.01 billion.
For 2022, Deutsche Post DHL (OTCUS: DPSGY) has raised its EBIT guidance to a record $8.38 billion, up from an original guidance of $7.98 billion in October. The first three quarters of 2022 were the best in the company’s decades-long history, said CEO Frank Appel in a earnings release.
At 8.5%, the EBIT margin was below the previous year’s figure of 8.8%, Deutsche Post DHL announced.
The main drivers are air and sea freight forwarding and contract logistics. The global trucking business saw 57% EBIT growth and 38.2% revenue growth year-on-year. At $7.88 billion, the division was the revenue leader among the company’s five divisions.
Air volume for the quarter decreased year-on-year but was roughly comparable to second quarter 2022 levels. Ocean freight volume increased 11.9% due to the integration of JF Hillebrand, an ocean freight company that Deutsche Post DHL acquired in 2021 and in completed March. The unit’s EBIT increased to 7.4% for the quarter.
Revenue at DHL Supply Chain, the contract logistics unit, rose 14.5% to $4.22 billion. EBIT increased by 54.9% year-on-year. The unit, the largest contract logistics company, posted strength across all regions. However, gains in the Americas were most pronounced as demand for e-fulfillment gained traction, the company said.
DHL Express, the company’s international Air Express unit, reported a 21.8% increase in revenue to $7.18 billion. EBIT increased 4.2% to $1 billion. Pricing measures and higher fuel surcharges offset a decline in international time-definite shipments to deliver an EBIT margin of 14.1%, the company said. That was below the EBIT margin of 16.4% in the prior-year quarter.