Deutsche Post in 2004 increases revenue and earnings

Deutsche Post in 2004 increases revenue and earnings
§ Revenue up 7.9 percent to about 43.17 billion euros
§ EBITA about 3.35 billion euros – 12.5 percent above year-earlier
§ Management Board to propose 50 cent dividend for 2004

Deutsche Post World Net posted a 7.9 percent sales increase to about 43.17 billion euros in 2004 and fully met its earnings targets. At about 3.35 billion euros, Group operating profit (EBITA) was 12.5 percent higher than a year earlier, the upper end of the forecast range. Group net income rose by 21.3 percent to about 1.59 billion euros, or 1.43 euros per share. That compares with 1.18 euros per share in 2003. The Group tax rate was 20 percent in 2004. The company reaffirmed its EBITA-target of at least 3.6 billion euros for 2005.
“Over the past 10 years, the group has been focusing on privatization and internationalization. Our latest results show how far we have come in this process. We want to share the financial rewards of this development with our shareholders,” said Chief Financial Officer Edgar Ernst.
“In working toward this remarkable development and progress of business and entrepreneurship, we have consistently stayed true to our social responsibilities,” added Chairman of the Management Board Klaus Zumwinkel. “This is highlighted by the employment pact with the unions that runs until 2008, as well as the recent apprenticeship pact and our commitment to providing universal postal services throughout Germany. We will continue to maintain this balance of economic and socially responsible activity and this should not be challenged by parts of the political community. Maintaining the agreed timeframe for deregulation and competition is a key precondition to protect thousands of jobs.”
All four corporate divisions, MAIL, EXPRESS, LOGISTICS and FINANCIAL SERVICES met their earnings targets for 2004 and exceeded the comparable 2003 figures. The “Americas” region in Corporate Division EXPRESS performed in line with expectations. The company had announced an operating loss of up to 500 million euros in the “Americas” region for 2004. The loss will be reduced to a maximum of 300 million euros this year.
Measures from the STAR value-creation program contributed to last year’s good results. Since its launch in November 2002, STAR has exceeded its targeted minimum earnings contribution of 800 million euros.
The Management Board plans to propose a dividend of 50 cents per share for 2004. The previous year’s dividend was 44 cents. Exact figures and additional details will be presented at the annual earnings press conference on March 22, 2005.