DHL Raises Full-Year Estimates After Strong Q3 Results!

German logistics giant DHL reported very strong third-quarter results on Thursday, with revenue up 23.5 percent , to $23.1 billion; operating profit up 28.6 percent to nearly $2.1 billion; and operating margin up from 8.5 percent to 8.8 percent.

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The company also raised its EBIT forecast for 2021 to a record $8.9 billion, up from the full-year earnings estimate of nearly $8.1 billion the company made in early October. In addition, DHL will release its full-year earnings forecast for 2022 in March, when it will announce its final results for 2021.

DHL said it expects EBITDA of $9.24 billion in 2023, up from its previous forecast of $8.55 billion.

For the first nine months of 2021, EBITDA and net income doubled compared to the same period in 2020, the company said. Earnings per share also more than doubled to $3.34. DHL said key metrics such as EBITDA for the first nine months have already surpassed the figures reported for the full year of 2020, a record year for the company.

Outside the United States, DHL is one of the world’s most visible transportation and logistics providers. It has been serving international markets since its founding in 1969. The company operates a strong portfolio of businesses: air express, air and ocean freight forwarding, supply chain management and e-commerce. For example, DHL’s Supply Chain division is the world’s largest provider of contract logistics. The parent company also operates parcel and mail services within Germany.

The company’s timed air express business, DHL Express, operated in the U.S. market from 2002 to 2009, during which time it withdrew from domestic service in the United States after suffering large losses. Since then, the division has been providing international flights to the U.S. market. Its e-commerce solutions division also operates domestically in the U.S., but not with its own equipment.

Because of its size and scope, the company was seen as representative of international trade and transportation activities. Its decision to raise earnings expectations after two years indicates that it believes the scale of e-commerce will continue and that international trade will return to pre-epidemic levels.

DHL’s international business units all reported higher quarterly results. DHL Express revenue rose 21.4 percent year-on-year and EBITDA was up about 30 percent. Revenue in the Global Air and Ocean Freight Forwarding division grew 53.3 percent and EBITDA doubled, while revenue in DHL Supply Chain Management grew 18.5 percent and EBITDA increased by approximately 24 percent. The E-Commerce Solutions division’s revenue grew 13.2 percent and EBITDA rose nearly 20 percent.

Shares rose more than 2 percent to $66.32 at the close of trading Thursday. In the past 52 weeks, the company’s shares have risen more than 41 percent.

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