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Parcel deliveries drive profits at Deutsche Post
[BERLIN] German postal and logistics group Deutsche Post DHL said it would continue to invest in its European parcel delivery network after strong demand for deliveries of goods to shoppers buying online helped drive third-quarter results.
Like other postal groups, Deutsche Post has seen rising volumes of parcels make up for declining letter volumes thanks to customers ordering online from sites like Amazon.com and Zalando.
Revenues at its eCommerce-Parcel division rose 11.6 per cent in the third quarter, partly helping to contribute to a doubling of profit at the post-eCommerce-parcel division to 295 million euros (US$326 million) after last year's results were hit by postal strikes in Germany.
Chief Financial Officer Melanie Kreis told Reuters last month the group was expecting a record Christmas in Germany, with a peak of 8 million parcels a day expected.
Shrugging off concerns over plans by Amazon to carry out more of its deliveries, Deutsche Post is instead investing in expanding its delivery network further, setting up what it dubs the "United Parcel Nations of Europe".
The latest step is its planned acquisition of Britain's UK Mail, which it expects to close at the end of the year, and the group plans to enter the market in Spain and Portugal next year.
Deutsche Post DHL reported on Tuesday third quarter earnings before interest and tax (EBIT) of 755 million euros, beating forecasts for 717 million in a Reuters poll.
It confirmed it expected 2016 EBIT to rise to a record level of between 3.4 and 3.7 billion euros. Analysts are forecasting on average full-year revenues of 58 billion euros and underlying EBIT of 3.5 billion.