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Deutsche Post confirms 2017 profit target

  • Deutsche Post DHL confirms its 2017 profit target
  • Reports a lower-than-expected 1.4 percent rise in first-quarter profit
  • Earnings before interest and tax (EBIT) were 885 million euros ($961 million)

German postal and logistics company Deutsche Post DHL confirmed its 2017 profit target on Thursday as it reported a lower-than-expected 1.4 percent rise in first-quarter profit.

Earnings before interest and tax (EBIT) were 885 million euros ($961 million), below the average analyst expectation in a Reuters poll for 915 million euros.

While Deutsche Post DHL is benefiting from increasing deliveries of parcels ordered by online shoppers, it said the price environment in its freight division remains challenging and it had been unable to pass on to customers higher rates that it had to pay carriers to transport customers' goods.

The freight division's operating profit dropped by almost 22 percent to 51 million euros in the quarter.

Deutsche Post DHL expects EBIT to reach around 3.75 billion euros this year.