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Deutsche Post sees profit hike in 2019, no sign of slowdown

Reuters with CNBC.com
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Key Points
  • Deutsche Post reported fourth-quarter sales rose 5.1 percent to 16.9 billion euros, above the average analyst forecast for 16.65 billion.
  • The German postal and logistics group confirmed its guidance for operating profit to reach at least 5 billion by 2020.
  • Deutsche Post CEO Frank Appel says the firm is "confident that we have laid the right foundation going forward."
Deutsche Post CEO: We're in a challenging environment — but far from recession
VIDEO2:3602:36
Deutsche Post CEO: We're in a challenging environment — but far from recession

Deutsche Post DHL Group said a restructuring program in its German post-and-parcel division will help boost profits this year and it sees no sign that global trade is slowing despite rising geopolitical tensions.

The German postal and logistics group reported fourth-quarter sales rose 5.1 percent to 16.9 billion euros ($19.11 billion), above the average analyst forecast for 16.65 billion, while operating profit was in line at 1.1 billion euros.

Deutsche Post said operating profit should rise to between 3.9 billion and 4.3 billion euros in 2019 and confirmed its guidance for the metric to reach at least 5 billion by 2020.

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

"We are happy that we have delivered our adjusted guidance (and) we are confident that we have laid the right foundation going forward," Deutsche Post CEO Frank Appel told CNBC's "Squawk Box Europe."

"Yes, the economic environment is a little more uncertain, but we still believe that we will see solid growth this year globally, and also a continuation of that next year."

The firm is trying to push through a proposal in Germany to raise stamp prices, with it's main argument being that the country's letter post is still cheap compared to other European countries.

A report in January said the German communications watchdog, the Federal Network Agency, had approved the company's proposed letter price hike.

Speaking on the progress in getting towards a decision, Appel said: "We expect that we will get a more defined decision in the second quarter... and then we can implement some stamp price increase this year."