The LOGISTICS Division was dissolved in March 2008 and replaced by the new FORWARDING/FREIGHT Division and the new SUPPLY CHAIN/CIS Division. Previously, the Corporate Information Solutions business was reported as part of the MAIL Division. The prior-year figures were restated accordingly.

The SUPPLY CHAIN/CIS Division continued to perform well over the nine month period, despite the difficult economic environment, with substantial new business wins, organic growth in revenue of 4.0% and in EBIT of 10.9%.

Revenue including negative currency effects of around €850 million declined by 4.1% to €10,183 million for the first nine months of 2008 (previous year: €10,614 million).

In the DHL Exel Supply Chain Business Unit, we generated new business of around €1 billion in annualised revenue in the first nine months of 2008. The renewal rate remained constant at 90%.

The Corporate Information Solutions business maintained double-digit organic revenue growth, primarily arising from new business gained in the previous year. This is partially offset by reduced volume levels in our document management and marketing literature businesses relative to the financial services sector, where two large former investment banks were amongst our most important customers.

Profit from operating activities (EBIT) remained stable in the third quarter. For the first nine months, however, EBIT decreased to €337 million (previous year: €387 million). The previous year’s figure included the sale of Vfw AG, which generated non-recurring income of €59 million. Adjusted for this inorganic effect and negative currency effects of more than €30 million, EBIT grew by 10.9%. Organic growth from all Supply Chain regions was partly diminished by the adverse impact on the financial services sector business within Corporate Information Solutions. Return on sales amounted to 3.3% (previous year, excluding the sale of Vfw AG: 3.1%).

Operating cash flow in the first nine months was €198 million (previous year: €43 million). Improvements in working capital management and, in particular, a stronger focus on customer payment terms contributed to a significant cash flow improvement.