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DHL: Profit margin remains at 10% this year

30.07.2007, 17:43 66

DHL, the international courier service company, has posted a turnover increase of 30% for international and domestic express services for the first half of this year against the same time in 2006.
"The highest percentage growth was registered on the segment of domestic deliveries, where volumes doubled compared with last year. Our plans for this year are to continue investing in our own distribution network, with examples in this regard being the enlargement of the car fleet by another 120 vehicles, the increase in the number of offices throughout the country by 20% and the increase in the number of employees by more than 10%," said Bogdan Obretin, commercial manager of DHL International Romania.
The positive results registered in the first six months were primarily due to the launch of new products, to infrastructure investments conducted by the company, to the development of customised solutions for the main industries and the expansion of the company's national distribution network.
Obretin believes that the current growth rate of DHL in Romania will continue above the targets set for 2007, which would be an approximately 30% turnover growth rate against 2006, on the international and domestic express services segment.
"We estimate that this year's profit margin will maintain at the same level as in 2006, around 10%. This is because of our investment plan, which will continue into 2007," added the DHL Romania official.
DHL's investments in Romania, which are put at 3 million euros, are directed towards the development of the vehicle fleet and the national network, as well as to the expansion of the company.
According to its own estimates, DHL accounts for 40% of the international express delivery market. The company's main clients are from the banking sector, the automotive industry, the textile industry and the consumer goods industry.
"Domestic courier services currently account for approximately 10% of our turnover. With the development of volumes on this segment, we expect a visible increase of the share of domestic courier services within the overall turnover. International courier services remain the core business segment for DHL and will continue to account for the bulk of the turnover," explained Bogdan Obretin.
DHL operates a fleet of over 230 vehicles in Romania, as well as its own network of mailing and service centres in more than 23 cities in the country. DHL also intends to buy around 120 vehicles this year.
The courier services company is held by Deutsche Post World Net and operates in two sectors, logistics and express courier services. The company posted 60 billion euros in international revenues last year, with the courier business contributing 17.2 billion euros to the results.
The company's main domestic rivals on the international courier services market are TNT, UPS and FedEx.

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