DHL 2006 Annual Report Download - page 51
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Enlarged logistics business developing strongly
In , the LOGISTICS Division smoothly and almost completely integrated Exel, grew
more strongly than expected and attained its targeted performance levels. As of July ,
, we transferred our European overland transport business – now the DHL Freight
Business Unit – from the EXPRESS Division to the LOGISTICS Division. e prior-year
gures have been restated accordingly.
Revenue totaled , million (previous year: , million). All three business units
contributed to this gure with sustained organic growth. Acquisitions accounted for
, million, mostly from the purchase of Exel. Exchange rate eects had a negative
impact amounting to million.
DHL Global Forwarding continued its growth across the board, as shown by the table
below. Revenue grew both organically and as a result of acquisitions by a total of . to
, million (previous year: , million).
DHL Global Forwarding: volumes
thousands 2005 2006 +/–%
Air freight Tonnage 2,380 4,110 72.7
Ocean freight TEUs1) 1,240 2,400 93.5
1) Twenty-foot equivalent units.
In addition to the acquisition eect, our air freight business also recorded organic
growth. Fuel and security surcharges also had a positive impact on the revenue
trend for the year as a whole, while a changed trade lane mix and lower freight rates
contributed negatively.
Revenue from ocean freight grew in particular as a result of acquiring Exel. In addition,
we notched signicantly increased volumes from existing business and with new
customers. A dip in freight rates on certain high-volume routes had an opposite eect.
e increase in the Other segment was essentially the eect of the Exel acquisition
and was bolstered by organic growth.
DHL Global Forwarding: revenue by segment
€m 2005 2006 +/–%
Air freight 2,925 4,956 69.4
Ocean freight 1,883 2,657 41.1
Other1) 915 1,658 81.2
Total 5,723 9,271 62.0
1) Previously reported under Projects/other.
We also achieved strong growth in the DHL Exel Supply Chain Business Unit, with
revenue pulling ahead signicantly from , million in the previous year to
, million in . Exel’s business provided a major boost in contract logistics.
e result was a sharp increase in revenue across nearly all sectors, as shown by
the table on the following page. As Exel leads the key fast-moving consumer goods
markets, the largest absolute growth was attained in this sector.
47
Deutsche Post World Net Annual Report 2006
Group Management Report
Revenue and Earnings Development