DHL cuts earnings outlook on weak B2B volumes

DHL cut its guidance for 2024 earnings before interest and taxes (Ebit) on Wednesday (Oct 30), citing continuously weak business-to-business mail volumes and lower-than-expected margins in its air freight forwarding business.

The company now expects an Ebit of 5.8 billion euros (S$8.3 billion) for the year, down from a previously expected range of 6 billion to 6.6 billion euros.

DHL also cut its medium-term growth forecast based on the updated outlook for 2024 and the weaker macroeconomic environment in Europe. It now expects an Ebit of 7 billion euros by 2026, down from a previous range of 7.5 billion to 8.5 billion euros.

The new guidance falls short of analysts’ expectations, who see Ebit to reach 5.9 billion euros in 2024 and 7.4 billion euros in 2026, according to a company-provided consensus.

DHL also reported a third-quarter Ebit of 1.4 billion euros, in line with market expectations, but flagged underlying business development was already reflecting weaker dynamics in business-to-business volumes. REUTERS