DHL Express (Ireland) posts €428,000 operating profit

AN IRISH arm of global distribution giant DHL returned to profit last year, its latest accounts show.

DHL Express (Ireland) Ltd made an operating profit last year of €428,000 after recording a deficit of €25.2 million in 2009.

Those losses were due largely to a restructuring of the business that involved €16.5 million in redundancy payments for 300 staff. The company is ultimately owned by Deutsche Post.

The restructuring involved the scaling back of the German-owned company’s domestic delivery service. This added to revenues falling by 29 per cent from €106.1 million to €75 million in the 12 months to the end of December 2010.

Interest payments and financial expenses totalling €530,000 led DHL Express to record a pre-tax loss of €102,000.

The report states “given the strength of Ireland’s export performance during the first quarter of 2011, some improvement in core international revenues and volumes has materialised in the early months” of this year.

The number of DHL Express staff fell to 347 last year from 603 in 2009. This resulted in the company’s staff costs reducing from €28 million to €16.8 million.

The directors’ report states that “during 2010, the company was focused upon its core air and road express business”.

“The company will continue to focus on its core air and road express business throughout 2011 and we are satisfied that the business restructuring previously undertaken has brought about the required repositioning which will enable the company to take advantage of any improvement in the economic situation as and when it may occur,” the directors add.

The filings show the company had accumulated losses totalling €25 million at the end of 2009.

The company’s had an overall shareholders’ deficit of €738,000 at year end.