DHL boss out on US loss
Deutsche Post World Net ousted the head of its DHL Worldwide unit over the weekend after forecasting larger-than-expected losses in the United States. The German mail, express and logistics group said Uwe Doerken will be replaced by John Mullen on the company’s management board. Mullen will run DHL Express Americas, which includes Airborne Express of the U.S. and Loomis of Canada, as well as DHL Express Asia Pacific and Emerging Markets. Mullen, a 49-year-old Australian who has spent 20 years in the global express industry, previously was chief operating officer of DHL Express Asia Pacific. The supervisory board of the Bonn-based company also said it has extended the contract of chief executive Klaus Zumwinkel by four years, through November 2008. Deutsche Post said last week its U.S. operations may post a loss as high of more than $640 million in 2004 compared to an earlier estimate of around $250 million as it boosts spending on marketing and ground infrastructure. It said it won’t break even in the U.S. until 2006, a year later than expected.
