[Billion Power News] A few days ago, DHL Express released its 2018 annual report. During the reporting period, revenue increased by 1.8% to 61.6 billion euros, while profits fell by 15.5% to 3.16 billion euros. The biggest loser was Post and Parcel (PeP), where revenue rose 1.7% to 18.5 billion euros, while pre-tax profit fell sharply by 56.4% to 656 million euros for the year.

It is reported that DHL will invest 502 million euros to restructure PeP into Post und Paket Deutschland and DHL's e-commerce solutions division, which will take effect on January 1 next year. ¡°In Deutsche Post and Parcel, the group has taken steps to ensure long-term EBIT growth for the division and has also consciously accepted that this will impose a short-term burden on EBIT,¡± said the group¡¯s chief executive Frank Appel.

In 2018, DHL's Express division saw the fastest revenue growth, up 7.3 percent to 16.15 billion euros, and EBIT grew second, up 12.7 percent to 1.96 billion euros, according to the report. The segment delivered revenue growth across all regions and was driven by growth in the international time-delivery business, which grew 7.4% year over year. The annual interest rate in the global freight division soared by almost 49 percent to 442 million euros. The segment's revenue was 14.98 billion euros, a growth rate of 3.4 percent. Annual revenue in the Supply Chain division fell by 5.7% (€13.35 billion) and EBIT fell by 6.3% (€520 million).

In the fourth quarter of 2018, Deutsche Post DHL Group reported a year-on-year increase of 5.1% in revenue (€16.93 billion) and a loss from operating activities of 4% (€1.13 billion). EBIT in the PeP division fell 28.4 percent to 366 million euros, while revenue rose 1.5 percent to 5.13 billion euros. EBIT in the Express division rose 14.2 percent to 570 million euros, while revenue rose 9 percent to 4.42 billion euros. EBIT in the global freight division rose 30.9 percent to 161 million euros, while revenue rose 5.6 percent to 4 billion euros. Revenues in the supply chain segment rose by 3.4 percent to 3.74 billion euros.

Deutsche Post DHL Group increased its investment by 16.8 percent in 2018 to 2.6 billion euros. The group plans to increase capital expenditure to about 3.7 billion euros in 2019, including 1.1 billion euros for debt renewals for its fast-paced aircraft fleet.