Deutsche Post to Buy Back Up to EUR1 Billion of Own Stock --Update
March 08 2016 - 11:00AM
Dow Jones News
(Adds detail and background.)
By William Wilkes
FRANKFURT--Deutsche Post AG shares jumped Tuesday after the
company said it would buy back up to 1 billion euros ($1.1 billion)
worth of its own stock and confirmed targets for this year and
2020.
The German logistics company, which is set to report 2015
results Wednesday, said the repurchased shares would either be
cancelled or used to meet other obligations. The firm said the
repurchase "is to be seen against the background of the strong free
cash-flow generation."
Deutsche Post also said it had met its minimum goal for earnings
before interest and taxes of EUR2.4 billion last year, a target it
had lowered in late October. For 2016, Deutsche Post has said it
expects EBIT of between EUR3.4 billion and EUR3.7 billion, and
forecast that operating profit would increase by an average of more
than 8% annually through 2020.
The firm's shares rose as much 6% to EUR24.08 shortly after the
afternoon announcement, leading the DAX index, which was lower most
of Tuesday.
Deutsche Post endured a tough 2015. Third-quarter net profit
fell substantially due to impairments on an information technology
project, despite rising revenue. The firm also faced costs related
to strikes and the post and parcel delivery group's reorganization
earlier in the year.
For 2015, analysts expect Deutsche Post to report fourth-quarter
EBIT of EUR951 million, which would mark a 5.1% increase from a
year earlier, helped by strong performance in its PeP division,
which includes post, e-commerce and parcel services.
Write to William Wilkes at william.wilkes@wsj.com
(END) Dow Jones Newswires
March 08, 2016 10:45 ET (15:45 GMT)
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