(Reuters) -DHL cut its guidance for 2024 earnings before interest and taxes (EBIT) on Wednesday, citing continuously weak business-to-business mail volumes and lower-than-expected margins in its air freight forwarding business.
The company now expects an EBIT of 5.8 billion euros ($6.3 billion) for the year, down from a previously expected range of 6-6.6 billion euros.
DHL also cut its medium-term growth forecast based on the updated outlook for 2024 and the weaker macroeconomic environment in Europe. It now expects an EBIT of 7 billion euros by 2026, down from a previous range of 7.5-8.5 billion euros.
The new guidance falls short of analysts’ expectations, who see EBIT to reach 5.9 billion euros in 2024 and 7.4 billion euros in 2026, according to a company-provided consensus.
DHL also reported a third-quarter EBIT of 1.4 billion euros, in line with market expectations, but flagged underlying business development was already reflecting weaker dynamics in business-to-business volumes.
($1 = 0.9230 euros)
(Reporting by Isabel Demetz, editing by Kirsti Knolle)
