Deutsche Post grows profits despite global slowdown

German courier company Deutsche Post revealed a 17% annual rise in third-quarter net profit, driven by growth in its domestic market and continued strength in its international express division.

Net profit for the quarter ended 30 September jumped to €468m compared with last year’s figure of €399m. The group also attributed lower tax expenses and finance costs to the positive result.

Revenue increased around 4.1% to €14bn during the period, boosted by growth in all divisions and positive exchange-rate changes.

Deutsche Post reiterated guidance for earnings before interest, taxes, depreciation and amortisation to be between €2.9bn-3.1bn in 2014.

The postal and logistics group has struggled in recent years due to heightened competition, particularly due to the increasingly widespread usage of online courier services. Moreover, Europe’s gloomy economic environment has weighed heavily on operations.

Deutsche Post said it expects "only slight improvement in the global economic environment". Rival courier firms such as TNT Express have already warned on profit margins given the weaker-than-expected growth in European economies.

The stock ended Wednesday's trading session down 3.2% at €24.31 in Frankfurt.