Deutsche Post set to deliver on 2016 targets after strong first quarter

German postal services and logistics giant Deutsche Post, owner of express delivery specialist DHL, on Wednesday said it was on track to meet its full-year targets after a strong first three months.

"We've had a good start to the current year," said chief executive Frank Appel.

"The efforts we made in 2015 to position ourselves for profitable growth in all divisions are paying off. Last year was a year of transition, and we are now firmly on track to achieve our targets for 2016," Appel said. 

Against the background of "moderate" global economic growth, Deutsche Post said that the restructuring it implemented last year "should lead to a substantial increase (in operating profit) in the current year."

It is projecting underlying or operating profit, as measured by earnings before interest and tax (EBIT), of 3.4-3.7 billion euros "after a good first quarter," the company said.

"The group is also maintaining its targets beyond 2016: Deutsche Post DHL Group continues to forecast an average increase in operating profit of more than eight percent annually during the period from 2013 to 2020," it said. 

CEO Appel described the first three months as the "strongest quarter in the company's history," with net profit up 29.1 percent to 639 million euros ($728 million) and EBIT rising by 21.3 percent to 873 million euros.

Revenues declined by 6.1 percent to 13.872 billion euros, but that was due to negative currency effects and accounting changes related to a key customers in the supply chain division, Deutsche Post said.