Taxes cut into increased Deutsche Post revenues .Deutsche Post was unable to post increased profits
As expected, the German logistics provider increased turnover by 7%
to E16.8bn (Dollars 14.66bn). Earnings before interest and taxes
went up 5.5% to E1.4bn. However, net profits, fell slightly from E1.1bn to E1.05bn. ‘The
primary reason for this was the year-on-year increase in the tax
ratio, due to the consumption of tax loss carry-forwards,’ said
chief executive Klaus Zumwinkel. Deutsche Post used its results to underline its target to become
‘global player number one in logistics’. ‘This year we will get a
good step further towards this goal,’ said Mr Zumwinkel at the
presentation of the first half year figures. Between January and June, business was boosted in particular by
strong performance in the express and logistics divisions. The
latter reported the highest growth rate in turnover, up 24% to
E4.7bn. Express services accounted for E3.1bn, up 8.6%. Letter
services, where Deutsche Post still has the national monopoly, had a
turnover of E5.8bn. The remaining share stems from financial
services. ‘We are more globally oriented than any of our competitors,’ said Mr
Zumwinkel. ‘We are the only truly integrated provider of logistics
services – including financing services.’ He added that Deutsche
Post, in contrast to other groups in the market, expected an
increase in both turnover and profits for the whole year. While postal services today account for nearly three-quarters of
Deutsche Post profits, it is planned to reduce this to 50% within
the next three years. Thirty per cent of Deutsche Post shares have been floated. The
remainder is still held by the German state. Deutsche Post shares were down 2.23% yesterday afternoon at E17.12
after earlier hitting a new 2001 low of E16.94.
Copyright 2001 Lloyds List.
Source: World Reporter (Trade Mark) – FT McCarthy.LLOYDS LIST, 22nd August 2001
