By Kim Richters

Deutsche Post AG on Wednesday raised its guidance for 2021, after preliminary results showed the second quarter exceeded expectations, thanks to high volumes in its consumer business and a continued recovery in the business-to-business segment.

The German freight-and-logistics company said group earnings before interest and taxes are expected to be more than 7.0 billion euros ($8.28 billion) for the full year and includes a payment of around EUR200 million in the third quarter related to a one-time coronavirus bonus for employees. It had so far guided for EBIT of more than EUR6.7 billion.

Free cashflow is expected to be more than EUR3.2 billion for 2021, compared with a previous guidance of more than EUR3.0 billion.

Deutsche Post also raised its 2023 guidance for group EBIT, targeting more than EUR7.4 billion, compared with more than EUR7.0 billion previously.

"The positive development of the group's businesses seen in the beginning of the year has continued well through the second quarter 2021", the company said. It added, however, that at "the same time the tight capacity situation both in Ocean and Air Freight markets continued."

According to the company's second-quarter preliminary figures, EBIT came in at around EUR2.08 billion for the period, compared with EUR912 million for the same period a year earlier. While the previous year's second quarter was affected by asset impairments, this year's period included a EUR40 million gain related to its minority stake in Global-e.

Deutsche Post is scheduled to release full quarterly results on Aug. 5.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

July 07, 2021 10:28 ET (14:28 GMT)