Deutsche Post management confirms full-year 05 Group guidance
In the context of the Offering Document, which is now being posted to Exel shareholders, the Board of Deutsche Post confirms the forecast that current year operating profit (EBIT) will be at least Euro 3.6 billion. Correspondingly, the Board of Deutsche Post forecasts that the consolidated net profits will exceed those of the previous year by at least Euro 500 million.
The profit forecast for the full year 2005 is based on the interim financial results for the six months ended 30 June 2005, the management accounts for the two months ended 31 August 2005 and the Board of Deutsche Post’s forecast of results for the six months ending 31 December 2005.
A further section in the Offer Document related to the current trading of Deutsche Post states that the current trading performance and outlook in the view of the Board of Deutsche Post are in line with expectations. As previously communicated to the markets, Deutsche Post faces integration challenges in its Express business and these challenges are affecting results for that division. But reduced pension provisions and pensions costs mean that the Board of Deutsche Post is able to confirm the previous group profit forecast as outlined above.
For all having access to the transaction website the Offer Document is expected to be available for download from Tuesday, 25 October 2005, 0800h CET. The document will be available only in English.
Deutsche Post set for $4.4bn profit
European Intelligence WireLloyds ListLloyds List 10-26-2005
By B’lent Erdogan in Cologne
GERMANY’s mail and logistics giant Deutsche Post has confirmed its forecast of an operating profit of at least €3.6bn ($4.4bn) this year.
Consolidated net profits would exceed its 2004 result of € 1.59bn by at least €500m, it said after publishing a takeover document to shareholders in UK logistics company Exel.
Deutsche Post reached an agreement with Exel in September. It has offered €5.5bn for the world leader in contract logistics.
Deutsche Post based its profit forecast on the interim financial results for the first six months of 2005, the management accounts for July and August and the board’s forecast of results for the second half of 2005.
It confirmed that it was expecting lower results in its Express business, which was facing ‘integration challenges’. However, Deutsche Post was able to confirm its forecast through reduced pension provisions and pension costs.
At the same time, Exel stated that it had a ‘strong trading performance’ in the third quarter. Freight management performance had improved significantly over last year, the company said.
