Deutsche Post DHL Group’s consolidated net profit fell by 59.7 percent year-on-year to 301 million euros (325.5 million U.S. dollars) in the first quarter (Q1), the German mail and logistics company announced on Tuesday.
Revenues of the group increased slightly by 0.9 percent to 15.5 billion euros in Q1 compared to the same period last year.
“The crisis once again demonstrates the value of our broad and resilient portfolio,” said Frank Appel, Chief Executive Officer (CEO) of Deutsche Post DHL.
Due to the coronavirus pandemic as well as “negative effects of 234 million euros incurred in the first quarter to realign the Group’s StreetScooter activities,” its earnings before interest and taxes (EBIT) dropped by almost 50 percent to 592 million euros.
At the end of February, the group had announced plans to stop building its own electric delivery van. For 2020, it’s anticipating total expenses between 300 and 400 million euros in connection with StreetScooter.
Since the further impact of the pandemic could not be predicted, the company had already withdrawn its full-year forecast in April. Enditem