Deutsche Post rises on report it may sell U.S. unit
Deutsche Post AG rose as much as 5.9 percent in German trading after Financial Times Deutschland said it may sell the unprofitable U.S. package and express-delivery unit to FedEx Corp.
Deutsche Post shares advanced as much as 1.27 euros to 22.70 euros and were up 3.9 percent at 12:15 p.m. in Frankfurt.
Bonn-based Deutsche Post may sell the U.S. delivery operation to FedEx and seek a merger partner for the Deutsche Postbank unit later this year, the German financial daily said today, citing unidentified company officials.
Deutsche Post spokeswoman Silje Skogstad declined to comment on plans for the U.S. DHL unit and said the company is evaluating several options to improve earnings. Regarding Deutsche Postbank, she referred to earlier comments by Chief Executive Officer Klaus Zumwinkel, who said the company is currently the lender’s most suitable owner.
“Elimination of these losses will provide a material boost to earnings,” London-based Collins Stewart analyst Andrew Fitchie said in a note to investors. “The clear message from the group is that restructuring is definitely under way, at long last.”
Deutsche Post will write down the value of the DHL Express Americas division by 600 million euros (USD 874 million), the company said Jan. 23. Chief Financial Officer John Allan said yesterday that the company would reveal details of a turnaround plan for the U.S. business in a “small number of months.”
The German company planned for DHL to break even in the Americas by 2009 and scrapped the deadline last year. The postal service bought the business in 2002 to compete with Atlanta-based United Parcel Service Inc. and Memphis, Tennessee-based FedEx in their home market.
Deutsche Post AG rose as much as 5.9 percent in German trading after Financial Times Deutschland said it may sell the unprofitable U.S. package and express-delivery unit to FedEx Corp.
Deutsche Post shares advanced as much as 1.27 euros to 22.70 euros and were up 3.9 percent at 12:15 p.m. in Frankfurt.
Bonn-based Deutsche Post may sell the U.S. delivery operation to FedEx and seek a merger partner for the Deutsche Postbank unit later this year, the German financial daily said today, citing unidentified company officials.
Deutsche Post spokeswoman Silje Skogstad declined to comment on plans for the U.S. DHL unit and said the company is evaluating several options to improve earnings. Regarding Deutsche Postbank, she referred to earlier comments by Chief Executive Officer Klaus Zumwinkel, who said the company is currently the lender’s most suitable owner.
“Elimination of these losses will provide a material boost to earnings,” London-based Collins Stewart analyst Andrew Fitchie said in a note to investors. “The clear message from the group is that restructuring is definitely under way, at long last.”
Deutsche Post will write down the value of the DHL Express Americas division by 600 million euros (USD 874 million), the company said Jan. 23. Chief Financial Officer John Allan said yesterday that the company would reveal details of a turnaround plan for the U.S. business in a “small number of months.”
The German company planned for DHL to break even in the Americas by 2009 and scrapped the deadline last year. The postal service bought the business in 2002 to compete with Atlanta-based United Parcel Service Inc. and Memphis, Tennessee-based FedEx in their home market.
