Record profit Deutsche Post after acquisitions
Press release
2000 was record year for Deutsche Post World Net
Record revenue and profit figures
On the way to becoming No. 1 global player
Positive outlook for 2001
At its press conference on financial statements today in Bonn, Deutsche Post World Net presented record revenue and profit figures. 2000 revenue rose by 46 percent over 1999 to EUR 32.7bn. Profit from operating income (EBITA) even leapt by 158 percent to EUR 2.38bn. Deutsche Post World Net broke more records with its net profit rising by 48 percent to EUR 1.53bn and its earnings per share rising by approximately 48 percent from EUR 0.92 to EUR 1.36.
The Chairman of the Group's Board of Management Dr Klaus Zumwinkel summarized: "Our record revenue and profits are accompanied by a strong balance sheet with increased equity. Return on sales is currently at over seven percent, and return on equity is at 62 percent."
Following an exceptionally successful business year, Zumwinkel has an optimistic outlook on the future business development. "After the restructuring of the company within Germany and the globalization of the Group, in phase three we are now focusing on putting Deutsche Post World Net on the path to becoming the No. 1 global player for logistics. We now have a new international business platform which will provide the basis for our Group's growth over the next few years.
For the first quarter of 2001 Zumwinkel expects a revenue increase thanks to acquisitions and organic growth in all four corporate divisions, as well as slight improvements in profits from operating activities (EBITA). He has the same positive expectations regarding revenue and profit throughout the year for the entire group and its international business.
Segments: Clear increases in the Express, Logistics and Financial Services corporate divisions and the international business
The transformation into an international logistics group is already evident in Deutsche Post World Net's segment reporting. While the corporate divisions Express, Logistics and Financial Services contributed just 51 percent to overall Group revenue in 1999, last year this figure had already risen to 66 percent, showing that Deutsche Post World Net has created three further strong pillars apart from its traditional business, mail.
This positive development is also reflected in the profit figures. Despite strong profit increases in the Mail division, the Express, Logistics and Financial Services divisions were able to increase their share of the corporate divisions' total profit from some eight percent in 1999 to approximately 26 percent in 2000.
Further, international revenue doubled to EUR 9.5bn and accounts for 29 percent of overall revenue.
In detail, the segment figures are as follows:
Revenue in the Mail corporate division increased slightly to EUR 11.7bn in 2000, and profits rose by almost 100 percent from EUR 1.01bn in 1999 to EUR 2.0bn in 2000. Decisive factors included the reduced payments to the Deutsche Post Pensions Service which were lowered in accordance with statutory regulations and will be permanent. In 2000, Deutsche Post World Net was able to maintain the strong market position of its Mail corporate division despite heavier competition and substitution effects from electronic media.
The Express division's market position was further reinforced, with the division generating revenues of EUR 6.02bn (+ 26 percent) and profits of EUR 76m (+ 27 percent). The focus of its activities was on the expansion of the Euro Express network and the announced takeover of the majority holding in DHL International, the market leader for cross-border express shipments.
In the meantime, the subsidiary Danzas has been successfully integrated into the Logistics corporate division. In 2000, Logistics contributed EUR 8.3bn (+ 86 percent) in revenue and EUR 113m in profit. This division provides the best example of Deutsche Post World Net's dynamic development. Only three years ago, the Group was barely present in the logistics market – today it is among the world market leaders. By acquiring companies such as Air Express International in the US and ASG in Sweden Deutsche Post World Net was able to strengthen its leading position in the worldwide logistics market.
The greatest increase of all in 2000 was achieved by the Financial Services corporate division, mainly thanks to the integration of DSL Bank into the Group. Revenue rose to approximately EUR 8bn (+ 178 percent), profits increased to EUR 505m (+ 771 percent). With some 10 million customers and savings deposits of EUR 31bn, today Postbank is one of Germany's largest banks. Postbank developed very successfully in 2000, achieving a 20 percent increase in online banking customers to over 800,000, and another 20 percent increase in phone banking customers to approximately 1.5m. In this respect, Postbank is the number two amongst Germany's banks.
Speech at the press conference
Annual report 2000
Press contact:
Deutsche Post World Net
Norbert Schäfer
Tel. ++ 49 (2 28) 182 9988
Fax ++ 49 (2 28) 1 82-98 22
e-Mail: [email protected]
