German logistics group Deutsche Post DHL said net profits were down 5.2 percent year-on-year between January and March Explore further Citation: Deutsche Post digs deep to master parcel boom (2018, May 8) retrieved 18 July 2019 from https://phys.org/news/2018-05-deutsche-deep-master-parcel-boom.html German logistics group Deutsche Post DHL confirmed its annual forecasts Tuesday, showing confidence although first-quarter profits slipped in the midst of a package boom spurred by online shopping. SAP more ambitious after soaring Q1 profits © 2018 AFP This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only. Net profits lost 5.2 percent year-on-year between January and March, at 600 million euros, the group said, adding that the shrinkage was down to the introduction of new accounting rules.Operating, or underlying profit added 2.3 percent, reaching 905 million euros, while revenues slid 0.9 percent, reaching 14.7 billion.Deutsche Post noted that operating profits had fallen in its packages and ecommerce division, saying investments in items like electric delivery vans and international logistics improvements to keep pace with the boom in demand had eaten into the result.Meanwhile unfavourable exchange rates undermined income from business outside the eurozone.”Overall we had a good start into the year, although we have a lot of work ahead of us for the remainder of 2018,” chief executive Frank Appel said.Ecommerce would remain “the most important growth driver for our businesses,” he added, keeping the group “confident” of reaching its full-year targets.In 2018, Deutsche Post forecasts a 10-percent increase in operating profit to around 4.15 billion euros, on track for its longer-term goal to exceed 5.0 billion by 2020.