Solid earnings despite the crisis

The prior-year figures for profit from operating activities (EBIT) were adjusted because we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group’s net finance costs/net financial income.

Division EBIT was €1,383 million, well below the prior-year level of €2,179 million. Fourth-quarter EBIT amounted to €503 million (previous year: €442 million). The repayment awarded in the EU state aid proceedings had increased earnings by €572 million in the previous year. After adjustment for non-recurring expenses such as €29 million from the sale of DHL Global Mail Services SAS in France (previous year: non-recurring income of €538 million), EBIT declined by 14.0% to €1,412 in the year under review (previous year: €1,641 million). In the fourth quarter, however, EBIT rose by 7.4% to €511 million, thanks to stringent cost management. The Arcandor insolvency resulted in expenses of €34 million in the reporting year. EBIT before non-recurring items has not been adjusted for this charge. Through strict cost management, we were able to compensate to a large extent for revenue declines arising from the recession and the structural changes resulting from removing Postbank from the VAT group. Wage and cost increases impacted earnings, however. Return on sales amounted to 10.1%.

Operating cash flow amounted to €1,148 million (previous year: €2,235 million), mainly due to the repayment awarded in the EU state aid proceedings in the previous year. Working capital amounted to €–878 million, nearly reaching the low level of the previous year (€–894 million).