Dhl Reports Q3 Net Income Below Expectations

(Reuters) -German logistics giant DHL reported a third quarter net income of 751 million euros ($817 million) on Tuesday, missing analysts’ estimate of 787 million euros in a company-compiled consensus.

DHL last week lowered its full-year and mid-term forecasts, citing a weaker macroeconomic environment in Europe and low business-to-business mail volumes, and pre-announced quarterly operating earnings in line with market expectations.

Its Post & Parcel Germany division saw letter volumes fall while staff and energy costs “literally exploded”, explaining the divisional drop in quarterly profits, CEO Tobias Meyer said in an interview published on the company’s website on Tuesday.

He also commented on the recent decision by the Federal Network Agency to allow DHL to raise postage prices, saying the granted increases were insufficient.

“We had expected a proposal that would consider inflation and the decline in letter volumes,” Meyer said.

($1 = 0.9192 euros)

(Reporting by Chiara Holzhaeuser in Gdansk; editing by Milla Nissi)