DHL Group, headquartered in Germany, adjusted its earnings before interest and taxes (EBIT) forecast to €5.8 billion ($6.3 billion) for 2024, a reduction from the previously set €6–€6.6 billion range ($6.5–$7.2 billion). The announcement, made Tuesday morning, led to a nearly 4% drop in company stock as investors digested the news. DHL attributed the revision to “weak economic dynamics” impacting demand across its service offerings.
Despite the overall outlook, DHL reported a 6.2% rise in third-quarter revenue to €20.6 billion ($22.5 billion), with net profit at €751 million ($819 million). This gain, however, was not enough to sustain earlier growth expectations for the upcoming fiscal year, given global economic uncertainties.
GXO Holding Steady Amid Turbulence
Meanwhile, U.S.-based GXO Logistics, which specializes in contract logistics, announced positive third-quarter results. With a 28% surge in revenue reaching $3.2 billion and organic revenue up by 3%, GXO’s results stood in sharp contrast. The company maintained its guidance for 2024, projecting organic revenue growth of 2% to 5% and adjusted EBITDA between $805 million and $835 million.
DHL confirmed it would not pursue a GXO acquisition, despite speculation in the industry about potential consolidation. Both companies appear set to navigate the uncertain economy independently.
Turbulent Times Ahead for Logistics Giants?
As global economic pressures weigh heavily on the logistics industry, companies like DHL and GXO are exploring ways to adapt, focusing on efficiency and strategic growth. With DHL’s revised forecast and GXO’s steady stance, all eyes are on how these giants will steer through the financial headwinds.
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