DHL 2003 Annual Report Download - page 67
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Business Developments
Goodwill amortization fell by 29.0% to €319 million (previous year: €449 mil-
lion). In 2002, it was impacted by an impairment loss of €205 million charged on the
goodwill of DHL US Ground Co., USA. Adjusted for this effect, amortization rose in
the year under review. This increase is mainly attributable to the extended consolidat-
ed group; for instance, in the course of 2003, we fully consolidated Securicor Omega
Holdings Ltd., which was previously proportionately consolidated, and acquired Casa di
Spedizioni Ascoli S.p.A., Mayne Logistics Loomis and Airborne, Inc.
As there was no requirement for any comparable impairment losses in the year
under review, EBIT rose by 5.4% to €2,656 million due to lower goodwill amortization
(previous year: €2,520 million).
Since the beginning of 2003, we have been reporting the interest cost on pro-
visions for pensions and on other interest-bearing provisions under net finance costs,
instead of in profit from operating activities before goodwill amortization (EBITA);
prior-year amounts were adjusted. This brings us into line with the standard presen-
tation of interest cost in the logistics sector. Net finance costs totaled €741 million
(previous year: €664 million) in the period under review. This figure includes the
interest cost on provisions for pensions and on other interest-bearing provisions of
€578 million (previous year: €548 million). The net loss from associates amounted
to €28 million in the period under review (previous year: €1 million). This figure
includes losses on the sale of the interest in DHL Airways on July 14, 2003. In total,
the Group recorded a profit from ordinary activities of €1,915 million, up 3.2% year-
on-year (previous year: €1,856 million).
The return on equity based on net profit before taxes declined from 35.5% to
34.2%. In the “Postbank at equity” scenario, it rose by 1.2 percentage points to 31.6%.
With a tax rate of 29.9%, we recorded a consolidated net profit of €1,309 million
in fiscal year 2003 (previous year: €659 million).
The extraordinary expense, and therefore the consolidated net profit, for the
previous year were impacted by the provision that we had to recognize for the Euro-
pean Commission’s ruling on state aid. Earnings per share improved accordingly,
doubling from €0.59 to €1.18 in the year under review.
The Board of Management is therefore proposing a dividend of €0.44 per share
to the Annual General Meeting. This corresponds to a total dividend of €490 million,
and an increase of exactly 10%.
MAIL partly offsets price cuts
Management Report
2002 1) 2003 Change
in %
Total revenue in €m 12,129 11,934 –1.6
Profit from operating activities before
goodwill amortization (EBITA) 2) in €m 2,144 2,036 –5.0
Return on sales 3) in % 17.7 17.1
1) Prior-period amounts restated due to restructuring of Mail International Business Division and other product portfolio optimization measures
2) Prior-period amounts restated due to reclassification of interest cost on pension obligations and other interest-bearing provisions
from EBITA to net finance costs
3) EBITA/revenue
MAIL Corporate Division