Deutsche Post 3Q Earnings Dropped on Restructuring Charges

   By Nathan Allen

Deutsche Post AG (DPW.XE) said Tuesday that its third-quarter earnings fell more than 75% due largely to one-off restructuring measures at its post, eCommerce and parcel division.

Net profit at the freight-and-logistics group was 146 million euros ($166.3 million) compared with EUR641 million a year earlier

Deutsche Post attributed the lower earnings to a EUR392 million charge booked as part of the previously announced restructuring at the division. Total restructuring costs should be around EUR500 million, the company said.

Revenue increased to EUR14.85 billion from EUR14.64 billion a year earlier, the company said.

Analysts expected net profit of EUR143 million on revenue of EUR14.89 billion, according to a FactSet-compiled consensus.

In June, Deutsche Post cut its 2018 guidance for earnings before interest and taxes by nearly 25%, citing rapid growth in demand for parcel delivery, which has higher associated costs and requires greater transport capacity than delivering mail.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 06, 2018 01:19 ET (06:19 GMT)

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