Deutsche Post DHL Group sells Williams Lea Tag to Advent International [Integrator]
Deutsche Post DHL Group further streamlines business portfolio, strengthens its focus on logistics
Advent to acquire leading global provider of marketing and communications supply chain services
Advent International: "We see great future growth potential in Williams Lea Tag on a global scale. Advent will support the company through targeted investment in people, technology and systems and strengthen its customer proposition and help its clients to realise the true potential of their brands."
Deutsche Post DHL Group has agreed to sell its UK-headquartered provider of marketing and communications supply chain services, Williams Lea Tag to Advent International ("Advent"). Advent will assume all assets of the Williams Lea Tag business. The agreement will enable Deutsche Post DHL Group to strengthen its focus on its core logistics service offering. Williams Lea Tag will benefit from Advent's expertise in building outstanding global businesses, enabling it to explore further development opportunities. The two companies will retain a close business relationship globally.
Andy Dawson, Managing Director at Advent International, said, "We see great future growth potential in Williams Lea Tag on a global scale. Advent will support the company through targeted investment in people, technology and systems and strengthen its customer proposition and help its clients to realise the true potential of their brands. Advent's expertise in executing complex carve-outs combined with our deep sector experience will ensure William Lea Tag's transition to an independent company is smooth and will put it on a solid foundation from which it can grow and prosper."
The operations and assets of Williams Lea Tag are expected to transfer to Advent by the fourth quarter of 2017. The business currently employs over 10,000 people and operates in more than 40 countries globally.
Posted at 09:40 パーマリンク
DHL will invest more than EUR 70 million in growing regional Asian footprint [Integrator]
DHL Supply Chain plans to build new facilities, expand truck fleet and invest in new technology, creating an additional 5,000 jobs over the next three years
End-to-end supply chain solutions and service innovation will support cross-sector growth and better serve customers in Vietnam, Cambodia and Myanmar
DHL Supply Chain has announced it will invest more than EUR 70 million in growing its regional footprint in Thailand, Vietnam, Cambodia and Myanmar by 2020. The first and only logistics company to acquire an operational business license in Myanmar since last month, DHL Supply Chain already benefits from a position of market leadership in Thailand and Vietnam, and will concentrate on Cambodia next for further growth opportunities. Over the next three years, the company plans to build new facilities, expand its fleet of trucks, and invest in new technology, creating an additional 5,000 jobs in the four countries.
"Asia-Pacific is one the most important regions for DHL Supply Chain being accountable for a significant share of our revenues in 2016. Consumer, retail and tech industries drive these developments becoming evident in increased amounts of new and extended contracts. Being already the market leader for the region it is fully natural for us to foster our commitment in the region and remaining a reliable partner," comments John Gilbert, CEO DHL Supply Chain.
Regional footprint in Thailand, Vietnam, Cambodia and Myanmar
DHL's investment will also serve the wider needs of a growing Thailand, and an economy which is expected to return to accelerated growth. Government investment in mega projects i.e. infrastructure, EEC, airport expansion plans and so forth are attractive elements for foreign investors in Thailand. According to Kasikorn Bank research1, Thai Land Transport and warehouse market value in 2017 growth is expected to be around five to seven percent. Kevin Burrell, CEO, Thailand Cluster, DHL Supply Chain Thailand explains, "With the technology and innovation that we invest in warehouse and transport operations in Thailand, coupled with our ability to deliver integrated solutions for customers, we are striving to drive enhanced value, which in turn acts as a strong differentiator for us in the market."
DHL Supply Chain Thailand also recently completed a move to new premises located in Bangkok's business area. The company already benefits from a reputation of being the Number 1 in contract logistics in Thailand and DHL's nationwide network comprises of a combined warehouse space of approximately 650,000 sqm across more than 70 facilities, supported by 10,000 dedicated employees. Working as a beneficial extension to its crucially important human talent, DHL has also employed intelligent systems in both warehouse and transport operations such as in automation and robotics, unmanned vehicles, vision picking, transport control tower and telematics.
Kevin adds, "DHL provides sector-specific services across the entire supply chain, encompassing warehousing management, transportation for various business types, expertise in end-to-end supply chain solutions and full management services. DHL Supply Chain provides globally standardized, cost-efficient, high-quality and innovative solutions. We are committed to supporting customers by delivering exceptional operational services and innovation across Thailand's entire supply chain, helping the country to become the premier logistics center for Southeast Asia. We will continue to consolidate and support markets in which we lead, namely Thailand and Vietnam, and invest in markets where we aim to lead such as Myanmar and Cambodia."
Posted at 09:39 パーマリンク
Deutsche Post DHL Group posts strong growth in revenue and EBIT in the second quarter [Integrator]
Group revenue increases by 4.4% to EUR 14.8 billion in the second quarter
Operating profit up by 11.8% to EUR 841 million
Forecast for full-year 2017 confirmed: EBIT expected to increase to about EUR 3.75 billion
CEO Frank Appel: "We are generating profitable growth and are right on track to meet our targets"
Deutsche Post DHL Group increased revenue and operating profit significantly in the second quarter of 2017. Group revenue increased by EUR 623 million to EUR 14.8 billion, with the international parcel and eCommerce business and the global Express business in particular driving this strong growth. With EBIT of EUR 841 million, Deutsche Post DHL Group recorded the strongest second quarter in its history, and the seventh consecutive quarter in which the company has posted an all-time quarterly high.
"We are very satisfied with both the second quarter and the entire first half of the year. Our company is growing in all areas and steadily increasing earnings," said Frank Appel, CEO of Deutsche Post DHL Group. "Our good results so far this year demonstrate that we are right on track to achieve our EBIT targets for full-year 2017. We also remain optimistic about the coming years. All of our divisions, thanks to their focus on fast-growing markets such as global e-commerce, are optimally positioned for long-term growth," added Appel.
Outlook: Earnings targets confirmed for 2017 and beyond
Following the successful first six months, the Group continues to forecast an increase in EBIT to around EUR 3.75 billion for full-year 2017. Deutsche Post DHL Group is also maintaining its forecast of an average increase in operating profit of more than 8% annually (CAGR) during the period from 2013 to 2020.
Second quarter of 2017: Group EBIT grows at double digit rate
Group revenue grew by 4.4% to EUR 14.8 billion in the second quarter. The company's operating profit increased by 11.8% to EUR 841 million. The improvement in the Group's profitability was driven largely by the Express (+12.2%) and Supply Chain (+21.6%) divisions, both of which achieved significant double-digit growth in operating profit.
Consolidated net profit after non-controlling interests increased by 11.3% to EUR 602 million against the prior-year level (2016: EUR 541 million) thanks to the increase in operating profit. Basic earnings per share saw a corresponding increase, rising from EUR 0.45 in 2016 to EUR 0.50 in 2017.
Capital expenditure and cash flow: Group further strengthens foundation for long-term growth
Deutsche Post DHL Group invested EUR 351 million in the second quarter of 2017 (2016: EUR 456 million). Investments continued to focus on positioning the Group for future profitable growth in all four divisions. For example, the Group made further progress in extending its domestic and international parcel infrastructure in addition to investing in the production of its StreetScooter electric vehicle. In the Express division, global and regional hubs were upgraded and the aircraft fleet modernized and expanded. The Group continues to plan for full-year capital expenditure of approximately EUR 2.3 billion (2016: EUR 2.1 billion).
Operating cash flow was EUR 726 million in the second quarter (2016: EUR -161 million), while free cash flow was EUR 385 million (2016: EUR -600 million). The respective prior-year figures were significantly impacted by an outflow of EUR 1 billion to fund pension obligations.
Post - eCommerce - Parcel: Continued strong performance in the international parcel business
Revenue in the Post - eCommerce - Parcel (PeP) division rose by 4.8% to EUR 4.3 billion in the second quarter. The division's positive performance was primarily attributable to growth in volumes and revenue in the eCommerce - Parcel business unit, with revenue increasing by 13.6% to EUR 2.0 billion. Parcel Europe (+61.5%) and eCommerce (+15.1%) were the main drivers behind this growth. A key positive factor behind the strong increase in revenue at Parcel Europe was the inclusion of the UK Mail business in the unit's consolidated results after successful completion of the British company's acquisition in December. UK Mail generated revenue of EUR 127 million in the second quarter. Organically, revenue at Parcel Europe increased by 21.2%. The positive development of the eCommerce - Parcel business unit shows once again how Deutsche Post DHL Group continues to benefit from its successful positioning as market and innovation leader in the high-growth e-commerce segment.
In the Post business unit, revenue saw a slight decrease of 1.8% to EUR 2.3 billion due to structural volume declines, mainly in the area of Mail Communication.
EBIT in the PeP division improved by 4.0% to EUR 259 million in the second quarter. Contributing to the increase in particular were growth in the German Parcel business, the normalization of the decline in letter volumes and disciplined cost management, while earnings growth was held back by further investments in the international parcel network and eCommerce business.
Express: Success story continues with new record margin
The upward revenue and earnings trend that has been maintained for years in the Express division continued in the second quarter. Revenue rose by 8.7% on the prior year to EUR 3.8 billion. This dynamic performance was driven once again by solid growth in the international time-definite (TDI) delivery business, where daily volumes rose by 8.5% year-on-year in the second quarter, supported by successful yield management.
The division's EBIT increased by 12.2% to EUR 469 million. In addition to continuous improvements in the network, strong growth in TDI was responsible for the significant increase in profitability. The increase is also reflected in the operating margin, which improved to a record level of 12.5% (2016: 12.1%).
Global Forwarding, Freight: Continued volume growth in air and ocean freight
Revenue in the Global Forwarding, Freight division rose by 5.5% to EUR 3.6 billion in the second quarter of 2017. In line with the dynamic market trend, the division registered significant growth in revenue and volumes in both the air freight and ocean freight businesses.
The division has not been able to immediately pass on the higher freight rates that have accompanied the market growth to customers in the form of higher prices. As a result, its gross profit declined slightly, as expected. Operating profit was at the prior-year level at EUR 67 million in the second quarter (2016: EUR 69 million). This shows that the earnings situation in the division continues to stabilize.
Supply Chain: Optimization program showing positive effects
Revenue in the Supply Chain division came in at EUR 3.52 billion in the second quarter, or approximately at the prior-year level (2016: EUR 3.54 billion). Negative currency effects were partially offset by the positive business development in the Asia Pacific region, in particular. Supply Chain continued to generate additional new business. The division concluded additional contracts with a total volume of EUR 288 million with both new and existing customers during the second quarter.
Operating profit rose by 21.6% to EUR 124 million. Adjusted for restructuring costs of EUR 16 million reported in the prior-year figure, EBIT improved by 5.1%. The increase reflects in particular the positive impact of successful implementation of the optimization program at Supply Chain.
First half: Revenue and earnings grow by 6%
Group revenue was up by 5.8% to EUR 29.7 billion in the first half of 2017 (2016: EUR 28.1 billion). All four divisions contributed to the increase. Operating profit advanced by EUR 101 million to EUR 1.7 billion. Consolidated net profit after non-controlling interests improved to EUR 1.24 billion in the first six months of the year (2016: EUR 1.18 billion). Basic earnings per share increased to EUR 1.02 in line with the increase in net profit (2016: EUR 0.98).
Free cash flow improved to EUR -45 million in the first half (2016: EUR -1.3 billion). FCF also registered a substantial increase after adjusting for the outflow of EUR 1 billion in the prior-year figure which related to the funding of pension obligations.
Posted at 20:50 パーマリンク
DHL launches suite of semiconductor logistics solutions [Integrator]
DHL combines competencies and capabilities under DHL Semiconductor Logistics to provide a full suite of end to end supply chain solutions
Launch of the Global Capital Support Center for semiconductor equipment moves with dedicated teams in Europe, Asia Pacific and the U.S.
Dynamic industry outlook: Semiconductor market to grow by 16.8 percent in 2017 surpassing first time value of 400bn US-Dollar, but correction is expected in 2019
DHL is revamping its logistics offering for the semiconductor industry by bundling individual solutions under DHL Semiconductor Logistics. This suite of services covers the entire value chain from inbound to manufacturing facilities through to final distribution to end users and provides end to end visibility of products, full compliance with international regulations and maximum security of sensitive and high value goods.
"With more than 3,000 dedicated employees and 50 facilities worldwide, we have built extensive infrastructure and expertise for the semiconductor industry. With our new offer, we connect DHL's broad capabilities, enabling us to individually service our customers along their complete supply chain in a cost-efficient way. This becomes crucial for an industry that requires special logistics to be a competitive differentiator," said Rob Siegers, President, DHL Technology Sector.
The semiconductor industry is undergoing significant changes due to the increased demand created through trending digitization and Internet of Things applications. After a moderate growth in 2016, the market is expected to grow in revenues by 16.8 percent surpassing first time a market value of 400bn US-Dollar, mainly driven by shortages in the supply in the memory segment.1 In combination with increased merger and acquisition activities, growth coming from automotive and industrial applications as well as wearable consumer devices, changes in manufacturing and supply networks are common. DHL's new suite of semiconductor logistics services addresses this development and is designed to improve flexibility and agility of semiconductor supply chains.
As part of DHL Semiconductor Logistics, DHL is launching a Global Capital Support Center with dedicated teams in Europe, Asia Pacific and the U.S. These teams are experienced in the unique handling and transportation requirements for the movement of capital equipment. Key features include 24/7 proactive monitoring supported by a specifically designed IT solution leveraging the latest Internet of Things developments.
Intel's Christine Boles, General Manager of the Internet of Things, Industrial & Energy, Smart Building Division, stated: "The support and insight provided by DHL as we developed the Intel Connected Logistics Platform has been very valuable. Our Logistics operations have in turn been providing input into the development of DHL's Global Capital Support Center. We look forward to reaping the rewards of a more advanced transportation visibility solution and a support center designed specifically for capital shipments."
"In light of the challenges the industry is facing when it comes to supply chain management, the new center allows us to provide our customers with a truly holistic view of their supply chain and effectively manage their logistic needs," explains Doug Whaley, Semiconductor Business Development, DHL Customer Solutions & Innovation. "Together with the data on our customers' logistics movements, we can identify potential issues early and consistently optimize logistics costs."
Posted at 16:30 パーマリンク
DHL Supply Chain makes smart glasses new standard in logistics [Integrator]
Augmented reality supported glasses now business-as-usual in warehouses around the globe
Successful completion of international trials prove stability of functionalities and value of solution
Productivity improvements average at 15 percent, with higher accuracy rates and approval ratings by users
DHL Supply Chain successfully completed its global augmented reality pilots and is expanding its "Vision Picking" solution in more warehouses around the globe, establishing a new standard in order picking for the industry. The smart glasses provide visual displays of order picking instructions along with information on where items are located and where they need to be placed on a cart, freeing pickers' hands of paper instructions and allowing them to work more efficiently and comfortably. The international trials have shown an average improvement of productivity by 15 percent and higher accuracy rates. The user-friendly and intuitive solution has also halved onboarding and training times.
"Digitalization is not just a vision or program for us at DHL Supply Chain, it's a reality for us and our customers, and is adding value to our operations on the ground. Customers have been very happy about the productivity gains and are equally excited about using innovative technology at their warehouses," says Markus Voss, Chief Information Officer & Chief Operating Officer, DHL Supply Chain.
After having completed a pilot program across the U.S., Mainland Europe and the UK throughout different industries such as technology, retail and consumer, DHL has now established the Vision Picking solution for the long run. The technology has matured to become a standard, replicable solution for customers, allowing faster and easier implementation in their operations, helping them to benefit from productivity gains with increased speed of operations and better picking accuracy.
Employees have been enthusiastic about being able to use state-of-the-art technology and are pleased with how light the smart glasses are, and how much more comfortable the process is now with hands-free picking. "We are very satisfied and happy that the pilot phase went so well and that we can now say augmented reality technology is one of our standard offerings at
DHL Supply Chain," Voss adds. "As one of the first logistics companies using the technology, we have truly established a new way of order picking in the industry."
DHL has been working alongside three partners in the pilot phase. Ubimax provided the augmented reality software xPick, whereas the recently announced Glass Enterprise Edition and Vuzix M100 and M300 glasses were used as hardware. Further proofs of concept running in Asia and Australia with other partners show similar promising benefits. Following the success of its Vision Picking program, DHL is looking into additional applications for augmented and virtual reality such as trainings, maintenance, dimension calculations and more.
Posted at 16:25 パーマリンク
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