DHL 2004 Annual Report Download - page 58

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The Americas region generated a loss from operating activities of € 495 million.
Although we recorded the first beneficial effects of the integration of Airborne Inc., the
operating results fell considerably short of our expectations. We intend to further improve
our product offering, infrastructure, brand awareness and our service quality. For this
reason we resolved additional expenses and investments in 2004. In addition, integration
costs reduced earnings by €142 million.
Revenue in the Asia/Pacific region increased by 25.1% to €1,967 million in 2004
(previous year: €1,572 million). All subregions generated good operating revenue growth.
Revenue also increased due to consolidation effects of € 210 million. These effects can
largely be traced back to the first-time full consolidation of DHL Sinotrans Express
Limited, China, and DHL Korea Limited, Korea, as of January 1, 2004. Negative exchange
rate effects, which amounted to €115 million, also had an impact.
The Emerging Markets (EMA) region recorded a 20.0% increase in revenue to € 900
million in the period under review (previous year: €750 million). We profited from an
increase in the volumes transported in the Gulf and positive developments in Eastern
European countries, particularly in Russia.
Overall, the corporate division generated a profit from operating activities before
goodwill amortization (EBITA) in the period under review of € 367 million. This was
equivalent to a rise of 0.5% over the adjusted prior-year figure of € 365 million. In
September of the year under review, we announced that, contrary to our original expecta-
tions, EBITA would not increase year-on-year by a minimum of 20% for 2004 as a whole,
but would actually fall by a maximum of 20%. In the event, EBITA fell by 10.0% com-
pared with the € 408 million that we reported in our 2003 Annual Report.
The return on sales for the express business outside the Americas region was 6.4%,
and for the corporate division as a whole, 2.1%.
LOGISTICS improves revenue and profit
LOGISTICS Corporate Division
2003 2004
Change
in %
Total revenue in € m 5,878 6,786 15.4
Profit from operating activities before
goodwill amortization (EBITA) in € m 206 281 36.4
Return on sales
1) in % 3.5 4.1
1) EBITA / revenue
The LOGISTICS Corporate Division increased revenue in 2004 by 15.4% to € 6,786 mil-
lion (previous year: € 5,878 million). Both business divisions showed substantial operating
growth. The increase in revenue attributable to acquisitions amounted to €105 million,
while negative currency effects impacted revenue by €141 million.
54