DHL records €428,000 operating profit on back of Irish export boost
The strength of Ireland's export performance in the first quarter of 2011 has contributed to an increase in the volume of business recorded by the Irish arm of international distribution giant DHL.
That is according to accounts just filed by DHL Express (Ireland) Ltd (DHLIL), which show that the company returned to record an operating profit last year of €428,000 after recording an operating loss of €25.2m in 2009.
The loss in 2009 was mainly due to a restructuring of the business that involved €16.5m in redundancy payments for 300 staff let go by the company.
The restructuring involved the scaling back of the German-owned company's domestic delivery service and this contributed to the company's revenues declining by 29pc from €106.1m to €75m in the 12 months to the end of December last.
Interest payments and financial expenses totalling €530,000 led DHLIL to record a pre-tax loss of €102,000 that followed a pre-tax loss of €26m in 2009.
The pre-tax loss last year took into account the non-cash depreciation cost of €932,000.
According to the directors' report, "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 2011".
The figures show that the numbers employed by DHLIL last year dropped from 603 to 347 with the company's staff costs reducing from €28m to €16.8m.
The figures show that the company employed 170 in management and administration and 177 operational staff.
According to the directors' report, "following on from the restructuring activities undertaken in 2009, during 2010 the company was focused upon its core air and road express business".
The directors stated that "although there was no discernible improvement in economic and market conditions there was an improvement in core international revenue and volume during the second half of the year".
The directors added: "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."