Deutsche Post hopes to deliver mail in UK

Deutsche Post AG, the German postal service operator, aims to take advantage of deregulation of the EU mail sector in the years 2003 and 2006, and perceives the UK market as particularly promising. With effect from 2003, the EU plans to lower the upper weight limit for state monopolies on letter deliveries from 350 grams to 100 grams (the limit in Germany stands at 200 grams), and a further reduction to 50 grams is planned in 2006.

With foreign expansion, Deutsche Post aims to compensate for the lack of scope for growth on the domestic letter delivery market, which currently contributes 70 per cent of the group’s result. In 2001, turnover for the company’s letter division remained stable at around 11.7bn euros, while Ebita fell by 2.2 per cent to 1.96bn euros. Growth motors for the group include express deliveries, logistics and banking. Group turnover rose by a good 2 per cent to roughly 33.4bn euros, Ebita by 7.3 per cent to 2.55bn euros, annual surplus by 4.3 per cent to almost 1.6bn euros.