Deutsche Post letter Monopoly Secure For Yrs; Good 2000 Results Seen

In Europe, Deutsche Post will likely continue to be legally protected from
>>competition in the letter business for years because of opposition by many
>>European Union countries to far-reaching postal market liberalization,
>>Zumwinkel said.
>>
>>The 15-member E.U. is likely to agree to only a modest market-opening step
>>for 2003 and put off a commitment to full liberalization until 2007 or
even 2009, he said.
>>
>>Postal liberalization is important to Deutsche Post because the vast
>majority of its profit comes from the letter business. Of Deutsche Post’s 1999 net income of EUR1.1 billion, EUR1 billion came from the mail business.
>>
>>Zumwinkel acknowledged that delayed E.U. postal liberalization could make
>>Deutsche Post more attractive to investors, but he also said it would
>hinder mail market opportunities in other E.U. countries.
>>
>>”From the investor’s point of view, it’s much safer,” he said. “But we
also we have fewer chances.”
>>
>>Zumwinkel also underscored that Deutsche Post was keen to expand not only
>in the E.U. mail market but also in the express, logistics and financial
>>services markets.
>>
>>On 2000 company results, due to be released in May, he stood by analysts’
>>estimates that Deutsche Post would post net income of EUR1.5 billion on
>sales of about EUR31 billion, up from EUR22.4 billion in 1999. He also held out
>the possibility the results would be better than that.
>>
>>In addition, Zumwinkel reiterated that Deutsche Post planned to pay
>dividends for 2000 totaling about EUR300 million and dividends for 2001 totaling 25%-30% of net income.
>>
>>He said Deutsche Post’s first day in the DAX index of leading German
shares would likely be March 19.
>>
>>Zumwinkel also said it was too early to say when the German government,
>which still controls 71% of Deutsche Post, would likely privatize more of the
>firm.
>>
>>”There are no specific plans about when to do a second tranche,” he said.
>>
>>The German government has agreed not to sell more Deutsche Post shares
>until at least a year after the Nov. 20, 2000 initial public offering of the
>>company.
>>
>>The IPO, which raised about EUR6.6 billion, was Germany’s largest since
>1996.