The forecast we published in March 2024 explicitly anticipated a year-on-year decline in earnings for the first half of 2024. This expectation was based on positive market effects – particularly those driven by the still significantly elevated freight rates in air and ocean freight in the first half of 2023 – coming to an end. We also did not expect any notable uptick in economic growth in the first half of 2024. The results for the reporting period were in line with these expectations. For the second half of 2024, we continue to expect earnings to exceed the prior-year period. The extent of this earnings growth will depend on how the global economy develops over the remainder of the year.
For the 2024 fiscal year, we are therefore leaving our forecast for consolidated EBIT unchanged at between €6.0 billion and €6.6 billion. As before, we anticipate EBIT of more than €5.7 billion in the DHL divisions and EBIT of more than €0.8 billion in the Post & Parcel Germany division. Group Functions is still anticipated to contribute around €–0.45 billion to earnings.
We also continue to plan for capital expenditure (excluding leases) to range between €3.0 billion and €3.6 billion in 2024. In view of the expected EBIT development in combination with a predicted increase in the asset charge, we expect the EAC to be down slightly year over year. Free cash flow is projected at around €2.75 billion, including a €250 million overall budget for M&A expenses.
