DHL Narrows 2023 Guidance Amid Economic Challenges

Deutsche Post, the parent company of DHL, has adjusted its 2023 outlook toward the lower end of its previous expectations due to a lack of economic recovery. The German logistics group now predicts earnings before interest and taxes to range between 6.2 billion euros and 6.6 billion euros ($6.63 billion-$7.06 billion), compared to its previous target of EUR6.2 billion to EUR7.0 billion.

Additionally, Deutsche Post has revised its EBIT forecast for 2025, anticipating earnings between EUR7.0 billion and EUR8.0 billion, down from the previously expected figure of over EUR8 billion.

"The recovery of the global economy has failed to materialize so far," acknowledged Chief Executive Tobias Meyer.

In the third quarter, the company recorded a net profit of EUR807 million, a 34% decline from the same period last year. Revenue also dropped 19% to EUR19.40 billion due to steep declines in its express and global forwarding segments.

EBIT for the quarter fell by 32% to EUR1.37 billion, as reported by the company.

According to consensus estimates from analysts, the market had expected an EBIT of EUR1.375 billion on revenue of EUR20.845 billion.