August 4 - DHL has noted that the performance of its Industrial Projects division in the first half of 2016 was considerably weaker than the same period in 2015, due in part to the conclusion of projects started in previous years and low oil prices reduci
The share of revenue related to industrial projects business was 20.6 percent - a reduction compared with the previous year's 29.2 percent. Gross profit in the division declined by 30 percent compared with the first half of the year.
Although revenue in DHL's Global Forwarding, Freight division decreased by 9.3 percent year-on-year in the second quarter of 2016, its operating profit grew by 72.5 percent to EUR69 million (USD76.7 million).
DHL noted that its earnings trend shows that the measures initiated last year to sustainably improve profitability at Global Forwarding, Freight are achieving positive results.
"We have worked hard to put the division back on track," said DHL's chief financial officer, Larry Rosen.
"We can now say that the turnaround programme in the forwarding business is bearing fruit. The division is recovering step by step - despite the persistently subdued market environment."
He added: "This represents the third quarter in a row with a significant year-on-year improvement in earnings and demonstrates that the measures introduced to boost profitability are gaining traction.
"We will proceed systematically further down this path. There is still much to do. But we are confident that we can return to the division's earlier profitability in the medium term, and in the long term gradually close the gap that still exists today with regard to efficiency and, with that profitability, compared with the industry leaders."