DHL 2002 Annual Report Download - page 34

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The profit from operating activities (EBITA) of the EXPRESS Corporate
Division amounted to €243 million in the year under review. The corresponding
return on sales of 1.9% was slightly above our expectations. A meaningful year-on-year
comparison of the profit from operating activities (EBITA) is only possible for the
three Business Divisions Express Germany, Express Europe and Global Mail. These
Business Divisions generated a profit from operating activities (EBITA) of €224 million
in the year under review after €176 million in the previous year. This growth was the
result of positive one-time effects as well as the performance of the Express Europe
Business Division, which recorded strong development due to its market leadership in
certain countries as well as cost savings in France and the Benelux states in particular.
In fiscal year 2001, we began restructuring DHL in the US in order to return
this company to profitability. We successfully drove forward this extensive program
in fiscal year 2002, with the result that DHL reached the break-even point as planned.
Strong earnings in the remaining regions offset the losses in the US.
LOGISTICS records a sharp jump in earnings
In the LOGISTICS Corporate Division, we generated revenue of €9,152 million and
thus, on the whole, succeeded in maintaining the prior-year level (€9,153 million).
Reduced air and ocean freight prices as well as weaker foreign currencies, particularly
the US dollar, impacted revenue development in the Intercontinental Business Unit;
revenue here fell by 3.6% to €4,233 million (previous year: €4,390 million). This
decline was only partially offset by an increase in freight volumes in the second half of
the year. By contrast, we increased revenue in the Solutions Business Unit by 1.6% to
€1,492 million (previous year: €1,468 million) thanks to growing demand for services
within the framework of outsourcing. Due to the full consolidation of Kelpo Kuljetus
and the first-time consolidation of the Cargoplan/Cargoline group, as well as
the takeover of a number of smaller units from the EXPRESS Corporate Division,
revenue in the Eurocargo Business Unit grew by 4.0% to €3,427 million (previous
year: €3,295 million).
The profit from operating activities (EBITA) increased substantially in fiscal
year 2002, rising 40.9% to €224 million (previous year: €159 million). The return
on sales of 2.4% was in line with our expectations. The increase in the profit from
operating activities (EBITA) is primarily due to the earnings contributions of com-
panies acquired in 2001, as well as to our cost-cutting measures, where we reduced
our overheads, discontinued business activities that were not sufficiently profitable,
optimized internal processes and consolidated our purchasing activities.
33
Management Report
Business Developments