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In the LOGISTICS Division, the prior-year figures were restated because we transferred our European overland transport business from the EXPRESS Division to the LOGISTICS Division under the name DHL Freight as of July 1, 2006.
The LOGISTICS Division continued to make gains in the first quarter of 2007. Revenue grew by 6.1% to €6,217 million (previous year: €5,860 million). This was countered by negative currency effects of €174 million. In addition, the sale of various smaller companies reduced revenue by €32 million. Purely organically, revenue grew by 9.6%.
The DHL Global Forwarding business generated revenue of €2,194 million (previous year: €2,227 million). The decline of 1.5% resulted from currency effects, lower freight rates and a drop in fuel surcharges in some regions.
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DHL Global Forwarding: revenue by segment |
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|---|---|---|---|---|---|---|
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|
Q1 |
| ||||
|
€m |
2006 |
2007 |
+/– % | |||
|
|
|
|
| |||
|
Air freight |
1,187 |
1,160 |
–2.3 | |||
|
Ocean freight |
606 |
686 |
13.2 | |||
|
Other |
434 |
348 |
–19.8 | |||
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Total |
2,227 |
2,194 |
–1.5 | |||
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DHL Global Forwarding: volumes |
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|---|---|---|---|---|---|---|---|---|
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|
Q1 |
| |||||
|
thousands |
|
2006 |
2007 |
+/– % | ||||
|
|
|
|
|
| ||||
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Air freight |
Tonnage |
942 |
1,002 |
6.4 | ||||
|
Ocean freight |
TEUs1) |
504 |
576 |
14.3 | ||||
|
1) |
Twenty-foot equivalent units. |
The transported air freight volume rose by 6.4%. Revenue increased at a similar rate when adjusted for negative currency effects and fuel surcharges. In contrast, the market only grew by 2.7%. Our business performed well, above all in Europe and the Middle East.
Ocean freight transported 14.3% more containers in the first quarter of 2007 than in the same period of the previous year. Here also, we greatly outperformed the market, which grew by around 9%. The shifting of production facilities to lower-cost countries, particularly China, continues to positively affect ocean freight volume on routes out of Asia.
The DHL Exel Supply Chain business’s revenue was up sharply, increasing from €2,855 million to €3,188 million year-on-year. This was mostly due to the ten-year deal with the NHS in the UK.
In the first quarter of 2007, the DHL Freight business reported revenue of €917 million (previous year: €911 million), up 0.7% from the prior-year period.
Profit from operating activities (EBIT) was €214 million in the period under review (previous year: €157 million). The increase by 36.3% was largely due to the sale of the waste management company Vfw AG, which was completed as of March 2, 2007 and resulted in non-recurring income of €59 million. Allowing for integration costs that were higher than in the previous year, performance is in line with expectations; return on sales rose from 2.7% to 3.4%.