Deutsche Post Profit Lifted by Stamp Prices, Parcels

By Friedrich Geiger

BERLIN--Deutsche Post AG (DPW.XE) said Wednesday that its profit rose strongly despite declining revenue in the second quarter, helped by higher stamp prices, additional working days and rising parcel volume, and that it has agreed to sell its long-distance bus service.

Net profit rose 56% to 541 million euros ($606.54 million) in the April-to-June quarter, beating analysts' EUR499 million consensus estimate. The increase was in part due to strike-related costs that had weighed on earnings in the second quarter a year ago, when net profit was EUR326 million. Second-quarter revenue declined 3.5% to EUR14.19 billion, in part due to currency effects and lower fuel surcharges.

Deutsche Post said it sells its long-distance bus service in Germany to FlixMobility GmbH, which offers travel service under the Flixbus brand, for an undisclosed price. Postbus did not live up to Deutsche Post's expectations in terms of profitability, said the company.

Europe's largest mailing and logistics company confirmed its full-year guidance for an operating profit between EUR3.4 billion and EUR3.7 billion.

-Write to Friedrich Geiger at friedrich.geiger@wsj.com

(END) Dow Jones Newswires

August 03, 2016 01:49 ET (05:49 GMT)

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