EXPRESS division

Positive business trend continues

In the EXPRESS division, revenue increased by 4.1% to €5,715 million in the first half of 2011 (previous year: €5,488 million) despite the fact that the figure for the first half of the previous year still included revenue of €201 million from our day-definite domestic businesses in the UK and France, which have meanwhile been sold. Excluding these sales and negative currency effects of €129 million, the rise in revenue was an encouraging 10.1%. The growth in revenue was the result of a steady rise in time-definite shipment volumes: we transported 9.3% more shipments each day during the reporting period than in the prior year, both in the Time Definite International (TDI) product line and the Time Definite Domestic (TDD) product line. In the TDI product line, weight per shipment exceeded the prior-year figure by 6.2%. In addition, we were able to generate higher revenues from fuel surcharges levied to compensate for our higher fuel costs.

The positive business trend experienced in the first three months of 2011 continued in the second quarter. In the TDI product line, growth in per-day shipment volumes increased by 10.7% compared with the same quarter of the previous year, meaning that second-quarter growth clearly exceeded the growth rate already attained during the first quarter of the reporting year. In the TDD product line, per-day shipment volumes increased by 8.6% compared with the second quarter of 2010. Revenues and volumes decreased in the Day Definite Domestic (DDD) product line, primarily due to the sale of the day-definite domestic businesses in the UK and France.

Furthermore, we sold our domestic business in Canada at the end of June 2011, in order to focus on the international express services there.

Steady growth in international shipment volumes in the Europe region

In the Europe region, revenue dropped by 3.0% to €2,461 million in the first half of 2011 (previous year: €2,537 million), above all due to the sale of our day-definite domestic businesses in the UK and France. Revenue in this region benefited from currency gains of €15 million, which resulted predominantly from our business activities in Switzerland and Scandinavia. Excluding these currency gains and structural changes, revenue increased by 4.3% year on year.

In the second quarter, per-day shipment volumes for the TDI product line increased by 10.1% compared with the prior-year period. Growth also accelerated compared with the trend of the first quarter. When comparing half-year figures, the rise in daily shipment volumes was 8.6% in the TDI product line.

Strong volume increase in the Americas region

Revenue in the Americas region increased by 5.4% to €941 million in the first half of 2011 (previous year: €893 million). This figure contains negative currency effects of €71 million, most of which were incurred in the second quarter. Excluding these effects, revenue increased strongly in the first half (13.3%).

Daily shipment volumes in the TDI product line rose by 9.7% in the first half of the year, with the increase in the United States reaching a strong 14.3%. The growth in volumes was greater in the second quarter than in the first three months. The increase compared with the prior year was 14.2% overall and 20.3% in the United States.

Asia Pacific continues to drive express business growth

The Asia Pacific region remains an important growth driver for our express business. Revenue for the first half rose by 9.7% to €1,766 million (previous year: €1,610 million). This figure reflects negative currency effects of €39 million. Excluding these effects, growth again reached double digits (12.1%).

Daily shipment volumes grew significantly, especially in the TDI product line, with a rise of 10.6% in the first half of the year and 11.3% in the second quarter.

Revenue and volumes grow in the EEMEA region

Revenue in the EEMEA region (Eastern Europe, the Middle East and Africa) increased by 4.6% to €618 million in the first half (previous year: €591 million). This figure contains negative currency effects of €41 million. Excluding these effects, growth amounted to 11.5%.

As in the first quarter, we also increased daily shipment volumes in the second quarter compared with the prior year in all product lines.

Significant profitability increase in all regions

The profitability of the EXPRESS division has risen considerably. Revenue and volumes are up significantly in all regions. In addition, we sold off our unprofitable day-definite domestic businesses in the UK and France in 2010 and in Canada in June 2011. Hence, EBIT for the first half of the year increased from €80 million to €460 million and the return on sales improved from 1.5% to 8.0%. The previous year’s EBIT was impacted by non-recurring expenses in the amount of €272 million, mainly due to the aforementioned disposals.

In the second quarter, EBIT increased significantly from €−30 million to €244 million. Return on sales rose in the second quarter from –1.0% to 8.3%. EBIT for the second quarter of 2010 was impacted by non-recurring expenses in the amount of €228 million.

Operating cash flow dropped slightly from €336 million in the previous year to €322 million. The positive earnings trend from EBIT was largely negated by the high cash outflow for working capital.