The LOGISTICS Division was dissolved in March 2008 and replaced by the new FORWARDING/FREIGHT Division and the new SUPPLY CHAIN/CIS Division. The business units of the FORWARDING/FREIGHT Division are still called DHL Global Forwarding and DHL Freight.

All in all, our business saw encouraging growth in the first nine months of 2008. Revenue increased by 11.0% during this period to €10,568 million (previous year: €9,519 million). This figure includes negative currency effects of more than €400 million and acquisitions in the DHL Global Forwarding Business Unit. The business achieved organic revenue growth of 14.0%.

The DHL Global Forwarding business generated revenue of €7,841 million (previous year: €6,888 million). Thus revenues grew by 13.8% year-on-year despite negative currency effects. Organic revenue growth was 17.7%. Gross profit in the business unit totalled €1,637 million. Despite the decline in gross margins, profit from operating activities (EBIT) improved favourably thanks to our ongoing optimisation of operating costs.

The volume of air freight transported registered a year-on-year increase in the period from January to September, though at a comparatively low rate of 2.4%. This was still better than the overall market, which stagnated at the previous year’s level due to the sharp deceleration of growth in global trade, particularly exports from northern Asia to the US and Europe. As a consequence, freight rates on numerous trade lanes experienced serious declines and capacities were reduced. However, since fuel surcharges increased sharply once again, especially in the third quarter, we nonetheless increased revenue by 14% in the first nine months of 2008. Our business remained robust in the Middle East and Africa in particular.

DHL Global Forwarding pursues the strategic goal of expanding its position in the ocean freight business. In line with this goal, we succeeded in outperforming the market – which grew between 7% and 8% – with volume growth of 12.5% in the period under review. Revenue rose by 13.2%. We increased revenues and performance in Europe, Latin America and northern Asia in particular.

Our industrial projects business, which we have been focussing on for two years, made another substantial contribution to growth, especially in the Middle East, Africa and Asia.

DHL Freight reported revenue of €2,811 million in the first nine months of 2008 (previous year: €2,699 million). The business unit showed organic revenue growth of 4.9% with good performance in the Benelux countries, Eastern Europe, Sweden and Germany. Gross profit reached €721 million, surpassing the prior-year figure. EBIT declined, partially due to currency effects.

Profit from operating activities (EBIT) amounted to €116 million in the third quarter (previous year: €102 million) and to €310 million in the first nine months (previous year: €253 million). Adjusted for negative currency effects of more than €20 million and acquisition effects, the business performed well with growth of 26% in earnings. Thanks to our strict cost management, we held our ground well in a persistently volatile market environment with increasing pressure on margins. Return on sales rose from 2.7% to 2.9%.

Operating cash flow in the period under review was €384 million (previous year: €182 million). Since we are consistently implementing our Roadmap to Value initiative, working capital and the cash conversion rate improved.