Company says it does not expect a broad economic upturn in the first half of 2024
06 March 2024 - 15:09
byBartosz Dabrowski
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DHL Group warned of weak demand in the first half of 2024 after posting a 25% fall in 2023 profit on Wednesday, sending shares in the German logistics giant down more than 5%.
DHL said it did not expect a broad economic upturn in the first half of 2024 and even further declines in volume in some markets.
It expected positive global economic momentum in the second half of the year.
The company forecast 2024 earnings before income and tax (EBIT) of €6bn to €6.6bn ($6.5bn to $7.2bn) while analysts had expected €6.6bn a company-provided consensus showed.
DHL Group shares were down 5.7% as at 10.19am GMT.
“Still no change in volume trends seen,” Stifel analysts wrote in a note to investors, adding that the wording on top-line trends was unchanged compared to DHL’s third-quarter reporting, when the company narrowed its forecasts citing a slide in e-commerce demand post-Covid.
Logistics companies have been racing to match costs to global demand that has fallen to prepandemic levels, and the entire industry is fighting for market share.
It reported a 2023 EBIT of €6.3bn, below analysts’ expectations of €6.4bn and down from €8.4bn a year earlier.
The company said it would extend its share buyback programme until 2025 and increase it by €1bn to a total of up to €4bn.
DHL said it plans to propose a dividend of €1.85 per share.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
DHL Group posts profit fall and warns on demand
Company says it does not expect a broad economic upturn in the first half of 2024
DHL Group warned of weak demand in the first half of 2024 after posting a 25% fall in 2023 profit on Wednesday, sending shares in the German logistics giant down more than 5%.
DHL said it did not expect a broad economic upturn in the first half of 2024 and even further declines in volume in some markets.
It expected positive global economic momentum in the second half of the year.
The company forecast 2024 earnings before income and tax (EBIT) of €6bn to €6.6bn ($6.5bn to $7.2bn) while analysts had expected €6.6bn a company-provided consensus showed.
DHL Group shares were down 5.7% as at 10.19am GMT.
“Still no change in volume trends seen,” Stifel analysts wrote in a note to investors, adding that the wording on top-line trends was unchanged compared to DHL’s third-quarter reporting, when the company narrowed its forecasts citing a slide in e-commerce demand post-Covid.
Logistics companies have been racing to match costs to global demand that has fallen to prepandemic levels, and the entire industry is fighting for market share.
It reported a 2023 EBIT of €6.3bn, below analysts’ expectations of €6.4bn and down from €8.4bn a year earlier.
The company said it would extend its share buyback programme until 2025 and increase it by €1bn to a total of up to €4bn.
DHL said it plans to propose a dividend of €1.85 per share.
Reuters
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