FRANKFURT, Germany (AP) — Mail, express delivery and freight company Deutsche Post DHL said stronger revenue from online shopping deliveries and smaller one-time expenses helped its profits more than double in the second quarter.
Net profit rose to 422 million euros ($561 million) from 196 million euros in the same quarter a year ago. Revenue slipped 0.6 percent to 13.6 billion euros, although the company said revenues would have risen by some 250 million euros without effects such as shifts in currency values.
The company said Tuesday the absence of one-time charges for a value-added tax settlement from a year ago contributed to the profit increase. It also credited the "dynamic performance" of its parcel business in Germany as online retailing continues to grow. Parcel revenues were up 9 percent to 867 million euros, helping boost the mail division's sales by 4 percent.
The company, which is based in Bonn, Germany, delivers the mail as Deutsche Post and operates international express delivery, freight and supply chain businesses under the DHL brand. It has 475,000 employees in 220 countries and territories.
It increased its outlook for the year in light of gains from one-time effects. It raised its profit goal to 2.75 billion-3.0 billion euros in operating profit excluding interest and taxes, up from 2.7 billion-2.95 billion euros.
The company's earnings beat stock market analysts' forecasts for 377 million euros net profit as compiled by financial information provider FactSet. Its shares rose 2.4 percent to 21.83 euros in early afternoon trading in Europe.
Deutsche Post DHL said that its global freight business saw a 6.3 percent drop in what it called a "challenging market environment" that meant lower volumes in both air and ocean freight, and on traditional east-west routes. Demand for north-south transport and within continents rose.