Deutsche Post DHL's CEO emphasized that evolving supply chain complexities could create growth opportunities, even as the company revised its 2020 profit targets downward. Frank Appel told a March 2019 press conference in Bonn that the firm's diversified operations positioned it to navigate global economic headwinds.
The logistics giant reported fourth-quarter 2018 sales of 16.9 billion euros, exceeding expectations, but warned that its 2019 profit guidance of 3.9-4.3 billion euros fell short of analyst forecasts. This projection included a 400 million-euro gain from the sale of its China supply chain business, according to Reuters.
Appel acknowledged risks from Brexit-related disruptions and slowing economies in Germany, Britain, and Asia, but argued that supply chain complexities could benefit the company. "Complexity is good for our business. We are very good at managing complex logistic streams," he stated, noting that short-term trade challenges might increase demand for specialized logistics solutions.
Despite a 25% stock price decline over 12 months, shares rose slightly after the earnings report. The company had previously issued a 2018 profit warning and initiated restructuring, including splitting its parcel delivery division into German and international units to improve long-term profitability.
Deutsche Post confirmed its 2020 operating profit target of at least 5 billion euros, though analysts noted the 2019 guidance midpoint was 8% below consensus. The firm also announced hiring hundreds of workers to handle new customs procedures related to Brexit preparations.
