Deutsche Post plans new cost cuts; looks for Asia, Eastern Europe acquisitions
Deutsche Post AG plans to start a new cost cutting programme when the current one, Spar, expires at the end of the year, chief executive Klaus Zumwinkel told the Financial Times Deutschland, adding the group also wants to make acquisitions in Asia and Eastern Europe.
‘The new programme should clearly express our targeted level of earnings in three years,’ Zumwinkel said.
‘Star targeted integration and costs. Now we want to concentrate more on customers and quality,’ he said, adding that more details will be available early next year.
On the group’s expansion plans, the CEO said Deutsche Post is looking at making acquisitions in Eastern Europe and Asia, adding that ‘in ten year’s the express mail service will be much more consolidated (than it is today)’ and that there is a call for ‘volume and size’ in the industry.
He noted however that a takeover equivalent in size to the group’s recent 5.5 bln eur purchase of UK logistics group Exel PLC is ‘not on the table for the next two years’.
ragnhild.kjetland@afxnews.com
