DHL denies sale to FedEx
A DHL spokesman says parent company Deutsche Post World Net has no plans to sell its U.S. Express delivery service to its Memphis-based rival FedEx Corp.
“There is no question about our exiting the U.S. business, a withdrawal can be completely ruled out,” DHL spokesman Jonathan Baker said in a phone interview with Memphis Business Journal, a Courier sister paper, Friday morning.
Baker said he’d been fielding calls from news media across the country after a story about a possible deal appeared in Financial Times Deutschland, a German business newspaper, Friday morning.
That report said Deutsche Post World Net was in talks with FedEx founder, chairman, president and CEO Frederick Smith about the possibility of a buyout or a partnership.
In return, Deutsche Post World Net would give FedEx a larger presence in the European market, according to the report.
DHL is the main customer for ABX Air, based in Wilmington. DHL has spent billions of dollars to build up its domestic presence. Nonetheless, U.S. operations lost USD 900 million last year and analysts don’t foresee a profit this year.
The company has said it will take an USD 874 million writedown of the value of its struggling DHL Express business in the Americas. Baker said that move was more about accounting than sales and said DHL’s problems were industrywide.
“Just like everyone else, (our problems) are a result of economic conditions that have affected the industry as a whole,” he said. “We’re continuing improvement in our U.S. business and are dedicated to serving our customers.”
A DHL spokesman says parent company Deutsche Post World Net has no plans to sell its U.S. Express delivery service to its Memphis-based rival FedEx Corp.
“There is no question about our exiting the U.S. business, a withdrawal can be completely ruled out,” DHL spokesman Jonathan Baker said in a phone interview with Memphis Business Journal, a Courier sister paper, Friday morning.
Baker said he’d been fielding calls from news media across the country after a story about a possible deal appeared in Financial Times Deutschland, a German business newspaper, Friday morning.
That report said Deutsche Post World Net was in talks with FedEx founder, chairman, president and CEO Frederick Smith about the possibility of a buyout or a partnership.
In return, Deutsche Post World Net would give FedEx a larger presence in the European market, according to the report.
DHL is the main customer for ABX Air, based in Wilmington. DHL has spent billions of dollars to build up its domestic presence. Nonetheless, U.S. operations lost USD 900 million last year and analysts don’t foresee a profit this year.
The company has said it will take an USD 874 million writedown of the value of its struggling DHL Express business in the Americas. Baker said that move was more about accounting than sales and said DHL’s problems were industrywide.
“Just like everyone else, (our problems) are a result of economic conditions that have affected the industry as a whole,” he said. “We’re continuing improvement in our U.S. business and are dedicated to serving our customers.”
