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.
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