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Deutsche Post upbeat for holiday season despite slower freight

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By Reuters
Deutsche Post upbeat for holiday season despite slower freight
FILE PHOTO: An electric powered truck of German postal and logistics group Deutsche Post DHL is pictured at a parcels distribution centre in Berlin, Germany, September 18, 2019. REUTERS/Fabrizio Bensch   -   Copyright  FABRIZIO BENSCH(Reuters)

BERLIN (Reuters) – Deutsche Post DHL <DPWGn.DE> reported an almost tripling of third-quarter operating profit on Tuesday and said it expected a strong fourth quarter as it benefits from booming ecommerce and its freight division kept growing even as global trade slows.

The German post and logistics group saw third quarter operating earnings jump to 942 million euros from 376 million a year ago, ahead of average analyst forecasts for 890 million, while revenue rose 4.7% to 15.6 billion euros.

The company said its international express business and the German parcel business grew especially strongly due to booming ecommerce and it confirmed its operating profit guidance for 2019 and through to 2022.

“For the fourth quarter, we anticipate a traditionally strong holiday season and we reaffirm our guidance for the full year 2019,” said Chief Executive Frank Appel.

U.S. rival FedEx Corp <FDX.N> warned in September that full-year earnings would miss analysts’ estimates, as the U.S.-China trade war exacerbates a global economic cooling.

Deutsche Post said the global air freight market remained weak in the quarter, while the ocean and overland freight markets lost momentum.

However, its global forwarding and freight division still managed to grow revenues 0.9% and increase its operating profit by 17% to 124 million euros due to cost cuts.

(Reporting by Emma Thomasson, editing by Riham Alkousaa and Michelle Martin)