Deutsche Post share price down 1.7% even after CEO claims no sign of slowdown
The group's shares opened slightly lower from the closing price a day ago to €27.00 on Thursday morning, before sliding to €26.65 minutes into early trading.
Shares of German postal company Deutsche Post DHL Group fell in early trading on Thursday as investors remain worried on a sluggish global economic trade for this year even after the group claimed that there were no signs of a slowdown.
Deutsche Post added that the restructuring program in its German post-and-parcel business segment will help support its earnings this year.
In December, the group’s rival FedEx spooked investors with a worse-than-expected slash in its profit expectations for this year. FedEx had warned of a slowdown in freight demand as the global economy is forecast to soften this year.
Deutsche Post's shares opened slightly lower from the closing price of €27.10 a day ago to €27.00 on Thursday morning, before sinking 1.7% to €26.65 minutes into early trading.
The counter pared back some of its losses close to an hour later, as it fell by 0.63% or €0.17, at €26.93 at 9.45am, Germany time.
Fourth quarter sales up 5.1%, higher than expectations
The postal and logistics firm posted a 5.1% increase in fourth quarter sales to €16.9 billion, higher than analysts’ forecast of €16.65 billion. Operating profit was within expectations, at €1.1 billion.
Deutsche Post said operating profit for this year should rise to between €3.9 billion and €4.3 billion.
The group’s chief executive Frank Appel said the postal company’s broad-based offerings made it ‘resilient’ even if global conditions worsen, adding that the group ‘have not seen any signs of a noticeable slowdown on the horizon’.
Deutsche Post had issued a profit warning for last year, and started a restructuring programme in June at its “post – ecommerce – parcel” division. The group also divided its post-and-parcel delivery business into a local and an international unit.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
