Deutsche Post reports progress in restructuring of logistics

Deutsche Post, the German postal operator, is reported to be showing progress with the development of its logistics division within subsidiary DHL and with the integration of the UK logistics service provider Exel. Integration is expected to be completed by the end of March 2007, according to a press source citing management.

The group’s logistics division is expected to show turnover well above 18bn euros at the end of the current year, discounting land transport, while ebit is expected to amount to a minimum of 700m euros. Last year, turnover reached 7.9bn euros, ebit 315m euros. By the end of the year, Deutsche Post logistics director John Allan will aim to complete the transfer of the group’s European overland transport from its express division to its logistics arm. It is estimated that this will bring the logistics division additional turnover of around 4bn euros. DHL recently won a contract worth turnover of 2.3bn euros to supply the UK National Health Service, and, following resistance among staff to the privatisation plan, business is reported now to be running smoothly.