Deutsche Post profit slumps 77 percent on restructuring costs

  • The group reported a consolidated net profit of 146 million euros ($167 million) for the third quarter of this year, a 77 percent drop from the 641 million euros reported in the same period last year.
  • The group saw its revenue improve to 14.8 billion euros in the quarter — an increase of 1.4 percent from last year. This, the group said, was attributable to its growing e-commerce unit.

Deutsche Post DHL Group reported a sharp slump in its net profits Tuesday, hurt by one-time restructuring costs in the company's parcel business.

The group reported a consolidated net profit of 146 million euros ($167 million) for the third quarter of this year, a 77 percent drop from the 641 million euros reported in the same period last year.

The group saw its revenue improve to 14.8 billion euros in the quarter — an increase of 1.4 percent from last year. This, the group said, was attributable to its growing e-commerce unit.

Speaking to CNBC's "Squawk Box Europe" Tuesday, Frank Appel, the CEO of Deutsche Post DHL Group said: "E-commerce is a major driver of our growth and we have seen very profitable growth along many years and that will continue. We had some short-term challenges and we are fixing that, but the underlying growth and the profitable growth will continue without a doubt."

Frank Appel, CEO of Deutsche Post DHL, in one of his company's carbon-neutral mail delivery vehicles
Ulrich Baumgarten | Getty Images
Frank Appel, CEO of Deutsche Post DHL, in one of his company's carbon-neutral mail delivery vehicles

The German postal and logistics group is grappling with spiraling transport and staff costs at its Post - eCommerce - Parcel (PeP) division, and the group issued a profit warning for 2018 in June and started a restructuring program.

"We are tackling the challenges in (this division) with determination and are making good progress in implementing the announced measures to improve productivity and the cost structure," Appel said in an official statement Tuesday.

Appel further added that he is confident the company will hit its earnings targets for 2018 and 2020 despite global risks.

Deutsche Post also highlighted a number of economic parameters such as trade conflicts and slow global economic growth that could impact the firm. However, Appel told CNBC that the U.S.-China trade war hasn't had much of an impact on the business since the group is predominately focused on Europe.

—Reuters contributed to this report.