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Deutsche Post World Net Annual Report 2007
Income and expense
Other operating income declined by €235 million to €2,586 million, due mainly to
the one-time factors contained in the prior-year gure: €276 million from exercising
the exchangeable bond on Deutsche Postbank shares, net income of €89 million from
the positive outcome of the arbitration proceedings against Deutsche Telekom and
€10 million from the disposal of McPaper AG. A further €64 million from the sale of
shares in the Czech building society Modra Pyramida were compensated for by vari-
ous smaller non-recurring e ects at Postbank. In the year under review, we recorded
income of €59 million from the sale of Vfw AG and net non- recurring e ects of
€–25 million at Postbank. ese mainly comprise the gain on the disposal of Post-
bank’s insurance equity investments of €391 million, provisioning in the investment
portfolio in the amount of €183 million and impairment losses of €112 million in con-
nection with the sub-prime crisis, as well as extraordinary e ects in administrative
expenses and non-recurring e ects in net interest income.
Materials expense and expenses from banking transactions rose in line with the in-
crease in revenue from €34,349 million to €36,875 million in total. Materials expense
rose to €30,488 million (previous year: €28,641 million), expenses from banking
transactions rose to €6,387 million (previous year: €5,708 million). Materials expense
also includes higher expenses for the NHS contract.
Sta costs dropped slightly by 0.8% to €18,471 million, due in part to a reduction in
pension expenses.
Depreciation, amortisation and impairment losses increased by €586 million to
€2,357 million (previous year: €1,771 million), primarily due to impairment losses
recorded on non-current assets in the Americas EXPRESS business as a result of
impairment testing.
At €5,193 million, other operating expenses were up €435 million on the previous
year. e increase stems from a series of smaller factors.
EBIT before non-recurring effects improved
e developments presented above generated pro t from operating activities (EBIT)
of €3,202 million. is gure contains non-recurring income of €59 million and net
non-recurring e ects of €–25 million at Postbank as well as a €594 million impair-
ment loss on the assets of the EXPRESS business in the Americas region. e prior-
year earnings gure contained non-recurring income of €375 million. Adjusted for
these factors, pro t improved by 7.6%.
Note 14
Consolidated EBIT
€bn
3.0
3.8 3.9
3.2
0704 05 06