DP DHL’s Appel: Walls are not the solution

Deutsche Post DHL chief executive Frank Appel is confident that trade will continue to grow despite recent protectionist rhetoric.
Speaking at the company’s annual general meeting, Appel was optimistic about the economic environment, saying that global trade would continue to grow despite uncertainties.
“The future is global. Anything else is a misconception,” said Appel. “If you build new barriers, you will not be successful in the long term. Walls are not the solution. We want to make tomorrow better than today. To achieve this, we need to grow together even more.”
He also made reference to the positive effects of global trade for improving living conditions in many regions of the world: “Wherever we invest, we help to ensure that society develops and prosperity grows. Protectionism is the wrong path. No matter where it is or what form it takes.”
Appel statement comes as the US and China seem to be heading towards a trade war. China said it would place 25% trade tariffs on 106 US goods, including soybeans, aircraft and orange juice.
This comes shortly after Washington named 1,300 Chinese products it intended to hit with tariffs of 25%. The US also imposed tariffs on aluminium and steel earlier in the year.
Meanwhile, it is less than a year until the UK is due to leave the European Union and the government recently re-iterated its intention to also leave the customs union as part of its exit from the bloc.
Appel said that the company is on target to hit its financial goals for 2020, while earnings before interest and tax are due to increase to €4.15bn.
Appel added that e-commerce is growing further and would remain a key engine for the business of Deutsche Post DHL Group. In 2020, an estimated 2.1bn.
He said: “Logistics is the backbone of e-commerce. And we make it really simple. From placing a pick-up order to tracking the current status of an item through to payment.” people around the world would shop online.
In light of the group’s “strong business performance”, the board of management and the supervisory board proposed a dividend increase of 10 cents (+9.5%) to €1.15 per share.
Appel also highlighted the company’s progress on environmental protection, pointing out that compared with 2007, the company had improved carbon efficiency in logistics by 32%.
By 2050, its greenhouse gas emissions are expected to be reduced net to zero.
To this end, the group has already got a variety of measures off the ground last year, such as planting over 1m trees.
In addition, steps were taken to double production capacity for the StreetScooter, the electric delivery vehicle developed by the Group.
Also, Günther Bräunig, chief executive of KfW Bankengruppe, and Mario Daberkow, a member of the management board of Volkswagen Financial Services, will be elected as new members of the supervisory board.

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