Deutsche Post delays US breakeven target

Deutsche Post, which owns the DHL express-delivery service, said Wednesday that it would take longer than it had expected to stem losses at its U.S. operations, sending the stock down sharply. U.S. operations will break even ”in coming years,” the company said. It had previously predicted operations there would break even in the fourth quarter of this year. The German postal service has spent about $20 billion on acquisitions abroad over six years, including DHL Worldwide Express and Exel, in preparation for the expiration of its domestic mail-delivery monopoly as of 2008. Difficulties with Airborne’s integration and a new processing center have led to losses in the United States.

Deutsche Post also said it would post full-year earnings of ¤2.24 billion, or $2.6 billion, up 40 percent from the previous year, when it releases its results on March 14.