DHL considers U.S. future
Deutsche Post will likely unveil plans for its problem-plagued DHL business in the United States on March 6, say analysts.
When the German parent company releases its earnings report, losses are expected for the express unit which lags behind UPS and FedEx in the U.S. market.
In December, Bear Stearns called for the German parent company to “back away from U.S. domestic express.” In last month’s report, Bear Stearns analyst Andrew Beh called on Deutsche Post management to “reconsider its strategy to become a global express operation offering international and domestic service in all major markets under an integrated brand and service umbrella.”
This month another investment analyst, Morgan Stanley, also made a rare direct call for a DHL pull out, saying Deutsche Post needed to make the move in order to make its own financial projections.
Deutsche Post and DHL say they remain committed to their U.S. operations.
“The U.S. is an important market in our commitment to offer a truly global service network,” DHL said in a statement. “As the world’s leading Express and Logistics company, the U.S. is strategically important to the Group both as a stand-alone market and as a high-performance extension of our global service platform.”
