Deutsche Post lifts full-year profit outlook

German postal and logistics giant Deutsche Post on Tuesday raised its full-year forecast slightly after profit rose in the second quarter. The group now expects full-year earnings before interest and tax to reach 2.75 billion euros to 3.0 billion euros ($3.65 billion to 3.98 billion). This an increase from its earlier prediction of 2.7 billion to 2.95 billion euros. "Given the economic challenges we continue to face, we can be satisfied with our solid performance in the second quarter," said Frank Appel, chief executive of Deutsche Post and its DHL logistics unit. "Our strength in the international express business and in Germany's parcel market has paid off once again in the past few months. Our focus on cash flow generation is also increasingly bearing fruit." In the second quarter running from April to June, net profit rose to 422 million euros from 196 million euros one year earlier, as tax-related one-off expenditures weighed on earnings. Revenue, however, declined 0.6 percent to 13.6 billion euros owing to negative exchange rate effects.