DHL Q2 profits drop was expected, as PeP division comes up short

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Deutsche Post-DHL’s Post-e-Commerce-Parcel (PeP) division has continued to prove problematic for the group. Despite a 3.4% upturn in divisional revenue, PeP’s second-quarter operating profit plunged 58.5%, dragging the group down with it. Not even a 56.7% upturn in profitability for Global Forwarding and growth of 10.2% in Express operations could offset the PeP damage, with group profits dropping 11.2% year on year. Acknowledging the challenges posed by PeP, chief executive Frank Appel said measures were being implemented that would bring about “long-term, profitable growth”.