Deutsche Post AG / Key word(s): Preliminary Results/Change in Forecast
Disclosure of inside information pursuant to Article 17 MAR
Deutsche Post AG raises guidance for 2020 based on preliminary Q3 2020 results.
The overall positive development of the group's businesses going out of Q2 has continued well through the third quarter. In September, typically an important month after summer, we have seen trading holding up very well and for Q3 2020 the EBIT performance is forming out as follows:
Preliminary group EBIT reached around EUR 1.37 billion in Q3 2020 (Q3 2019: EUR 942 million). This includes the effect of the one-time bonus of EUR 300 to each of the more than 500,000 employees of the group (c. EUR -170 million) as well as the one-time payment to P&P employees as part of the just concluded wage agreement in Germany (c. EUR -45 million).
Operating profit in Post & Parcel Germany was around EUR 320 million (Q3 2019: EUR 304 million) including the effects of the one-off payments of a total EUR 95 million.
In light of the ongoing earnings momentum, management has decided to adjust the outlook for the full year 2020 as follows:
The reported group-EBIT is expected between EUR 4.1 billion and EUR 4.4 billion (previously EUR 3.5 billion - 3.8 billion). In anticipation of a very strong peak season - in particular for the e-commerce driven businesses - our strong focus in the fourth quarter will be on securing all resources needed to maintain a high quality service level. Achieving the upper end of the guidance will depend on whether the volume development in Q4 will allow for an efficient utilization of the networks.
The group continues to expect an EBIT of around EUR 1.5 billion for Post & Parcel Germany.
Gross capex (excluding leases) for the full year 2020 is still expected to be in total at around € 2.9 billion, free cash flow is now expected to be more than EUR 1.8 billion (previously around EUR 1,4bn). This includes all mentioned one-off effects and the already previously expected around EUR 300 million for the 777 renewal program in the Express intercontinental fleet.
The comprehensive disclosure for Q3 and the first 9 months of 2020 will be released on November 10th as planned.
- END -
07-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Deutsche Post AG
+49 (0)228 182 - 63 100
+49 (0)228 182 - 63 199
Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange
EQS News ID:
End of Announcement
DGAP News Service