DHL Overcomes Lower Volumes to Post $900 Million Profit

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The low global trade sizes that were weighing on the top of the DHL Group line in the second quarter of the company’s revenues decreased by almost 4 percent, but the logistical services giant has retained the profit directions despite the volatile background.

DHL reported that net profits grew 9.6 percent to 815 million euros (943.8 million dollars), while revenues decreased by 3.9 percent to 19.8 billion euros (23 billion dollars) in this period.

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Although it expects a defeated economic environment along with expected cost discounts, DHL expectations for the 2025 fiscal year are still unchanged, with profits before interest and taxes reach at least 6 billion euros ($ 7 billion). The free cash flow is still directed to 3 billion euros ($ 3.5 billion).

For the second quarter, the shipments of the significantly signed countries (TDI) in the company’s DHL Express sector decreased by 10 percent. Financial Director Melanie Chris described it as “a number higher than what we had in the previous quarters.”

B2B sizes witnessed a decrease of 2 percent, while B2C sizes reduced the broader number when 20 percent collapsed.

From the market point of view, well -known TDI shipments between the United States, which represented 17 percent of global sizes, sank 31 percent in a quarter.

The minimum relevant shipments and Hong Kong to the United States were the main perpetrator, as Chris described it as “the only market decrease with a significant decrease in folders.”

The closure of the commercial exemption from customs duties on the packages of less than $ 800 on May 2 did a number of air cargo between the Chinese and American markets. UPS has already reported in late July that the sizes of China to the United States were launched by 34 percent on an annual basis in May and June as soon as the minimum is canceled. This ruling ended a few weeks after the United States was temporarily slapped by 145 percent on Chinese commodities, which includes chains of providing air cargo on the commercial corridor across the Pacific Ocean.

DHL has the benefit of not concentrating the United States like UPS. In April, the company said it reduced its minimum sizes before May 2.

To counter the total decrease in the total DHL Express chip, the company has reduced the air capacity by 7 percent. The company’s annual rate increased at the beginning of the year also helped enhance revenues per kilogram, which is charged by 4 percent.

Chris said: “We have done more than that through the network to adapt to the fluctuating regional trade flows,” said Chris.

The fluctuations of volume across the commercial corridors also affected the DHL recharge department, as the revenues decreased by 5.3 percent to 4.6 billion euros ($ 5.3 billion).

The sizes of air charging increased by 1 percent to 442,000 metric tons in the second quarter, while the ocean charging sizes decreased 6 percent to 796,000 equivalent units (TEU). On an average basis, DHL says that Ocean sizes would have been achieved from the previous year if that was not to stop the goods with low revenue from two of its largest customers.

In anticipation of the peak holiday season, DHL will again implement additional fees for the second year in a row. These additional fees varied according to Trade Lane last year and were largely dependent on Asia’s trips to the United States, where the company witnessed capacity restrictions.

Kris was little on the details, but he hinted that the fees may be implemented differently to spend the 2025 holiday based on the current climate.

Chris said: “The intention of the additional demand is to balance the cost of production on the side of the offer with the expected demand.” “Here, we will really take some time to work through the details, until we get it properly, including the right demand fees appropriate for each commercial lane, as the situation is completely different in the Pacific Ocean compared to what it was last year.”

The profit call has followed a series of international investments with large funds in recent months for DHL, including investing more than $ 740 million in robots programs in the United Kingdom and Ireland, as well as $ 500 million to expand infrastructure in the Kingdom of Saudi Arabia and the United Arab Emirates.

Although these investments helped set a schedule for international and category, the company’s cost reduction capabilities within its “Fit for Growth” program helped pay DHL profits in the unconfirmed environment.

Airline costs are reduced by 7.7 per cent in line with the low capacity in DHL Express, while the costs of the PDD and the delivery (PUD) are 5.2 per cent. In the United States, PUD costs were driven by unifying delivery and capacity modifications.

In all areas, the costs of facilities decreased by 1.3 percent, which resulted in the wage inflation, says DHL. The logistical services giant suffers from low labor costs from a previous year, with full -time control costs 3.2 percent. The costs of indirect employment decreased 1.1 percent.

2025-08-05 21:35:00

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