German postal and logistics group Deutsche Post DHL Group confirmed its profit target for the year, although said it had work to do after it reported weaker than expected first quarter results on Tuesday.
The company said profit in its post-eCommerce-parcels (PeP) division was hit by higher staff and transport costs, plus the costs of expanding production of its StreetScooter electric delivery vehicles and growing its international parcel business.
It also saw one-off effects of 50 million euros ($60 million) from customer contracts in its supply chain division.
“Overall we had a good start into the year, although we still have a lot of work ahead of us for the remainder of 2018,” Chief Executive Frank Appel said in a statement.
The company reported first quarter revenues down slightly to 14.7 billion euros ($17.51 billion), missing expectations for 15.15 billion euros due to currency effects and the sale of unit Williams Lea.
It posted operating profit of 905 million, also below the 960 million expected in a Reuters poll.
The company is aiming for operating profit of 4.15 billion euros this year, and an increase to over 5 billion for 2020.