DHL calls out air cargo contribution to 16% Q3 profit gain

DHL Group recorded strong earnings growth during the third quarter, reflecting the continued resilience of global trade despite geopolitical headwinds, the ability to pass through rising fuel costs to customers and the targeting of high-margin industry verticals, such as healthcare and data centers.

DHL, headquartered in Bonn, Germany,(XETRA: DHL) reported revenue of $25.36 billion, a gain of 12.6% from the same period a year earlier. Operating profit increased 16.2% to $1.9 billion, led by the Express, Forwarding and Supply Chain divisions, with the profit margin inching up to 7.6%. Diluted earnings per share were up 8.5%

The company last month adjusted up full-year earnings before interest and taxes to $7.8 billion), topping its earlier outlook for $7.3 billion from core operations. It also raised its projection for free cash flow to $3.6 billion from $3.37 billion earlier.

DHL Express earnings before interest and taxes soared 50% to $1.16 billion, benefitting from a 9.7% increase in transported weight per day, disciplined pricing and capacity management, along with structural cost improvements implemented over the past two years. Gain in transported weight stems from the recent strategy of offering industrial shippers greater access to the company’s time-definite, international air network to move heavy shipments, which command higher rates than parcels and improve utilization of the company’s cargo aircraft.

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