Air, Logistics, Forwarding

Virus clouds DHL financial outlook

[ February 28, 2020   //   ]

Deutsche Post DHL Group said that it had achieved record earnings in 2019 but that its 2020 earnings guidance of €5bn is, as of now, excluding any effect induced by the Coronavirus. Chief executive Frank Appel said: “It is currently hard to judge how strong the impact will be.”

In recent weeks, trade volumes have weakened, not only on the inbound and outbound China trade lanes but also in other Asian countries while constraints on industrial production are increasingly expected also outside of China.

The Group currently sees more significant effects for the DHL Express and DHL Global Forwarding divisions, where the business is particularly affected by cross-border trade flows into and out of China.

However, should the economic situation normalise, there could also be positive effects for logistics companies but, in the case of a longer duration or a worsening of the current situation over the coming months, the negative impacts for the Group are likely to outweigh the positives.

The Group has decided not to further pursue talks on a partnership with StreetScooter activities. Instead, StreetScooter will concentrate on the operation of the current fleet of e-vehicles. Appel said: “Thanks to our StreetScooter we have one of the biggest electric delivery fleets in the world and have made a significant contribution to the development of e-mobility. We have always said that we do not want to be a car manufacturer. A further scaling of the business without the right partner does not fit our long-term strategic goals.”