DHL express shipments from China and Hong Kong dropped due to the U.S. ending a waiver on duties and fees, possibly costing $231 million in operating profit. Despite a 3.9% revenue decline, DHL Group increased profits by 5.7% in the second quarter through cost savings and yield management improvements.

DHL anticipates ongoing economic volatility but remains focused on efficiency and growth markets. The company reported a 10% volume decline in core air products but increased operating profit and margins through effective capacity management and cost reductions. DHL also cut delivery costs by 5%.

DHL warned of a potential $231 million hit to full-year operating profit due to the elimination of the de minimis policy, affecting Express shipments. Management credits cost-saving measures and capacity adjustments for stabilizing earnings in various divisions. The company also reduced full-time employees by 3.2%.

Amid a challenging global economy, DHL maintained guidance for operating profit and free cash flow. The company’s Fit for Growth plan aims to eliminate $1.1 billion in structural costs by 2026. DHL also continues to invest in growth markets and infrastructure while adjusting capital expenditures in response to economic uncertainties.

Read more at Yahoo Finance: New US de minimis policy could trim DHL profit by 3%