Acquisitions boost Deutsche Post
Germany’s Deutsche Post World Net said on Wednesday that its profit rose by nearly 50% in 2000 as the former postal monopoly went on a buying spree to push into foreign markets and expand beyond delivering mail.
Net profit jumped 48% to 1.5 billion ($1.3 billion) from $895 million the previous year. Sales advanced 46% to $29.2 billion from $20 billion.
Deutsche Post, partially privatized by the government in November, has made a string of acquisitions to transform it into a global mail and freight giant to rival integrated carriers like FedEx Corp. and United Parcel Service.
Last year, it acquired Belgium-based air express-delivery leader DHL International Ltd. as well as freight companies in Europe and Asia, the latter through its logistics unit Danzas.
Excluding interest, tax and amortization, profit soared 158% $2.1 billion, the Bonn-based company said.
Profit in its main mail business, where it makes about three-quarters of its earnings and which is still shielded from competition, was also helped by lower pension payments for its German employees.
Deutsche Post, which also offers banking services, forecast a further boost for both sales and earnings this year after a good first quarter. It is to release results for the first quarter on May 30.
The German government sold 29% of Deutsche Post in November and is preparing legislation to allow it to make good on its intention to eventually cede majority control.
