Deutsche Post adjusts turnover and profit forecast downwards

Deutsche Post, Germany’s postal services operator, has adjusted both its turnover and profit forecast downwards. Management now expects turnover of nearly 40bn euros and operating profits of between 2.2bn euros and 2.3bn euros for 2002.

Operating profits are thus set to fall by between 250m euros and 350m euros this year. Last April, management forecast turnover of 41bn euros for 2002. The group recorded a 2 per cent turnover increase to 33.4bn euros in 2001. As a result of the expected turnover and profit drops, management is preparing a restructuring programme, which it will present to the public in late October 2002. Deutsche Post will issue its first bond during the next few weeks. The bond issue of roughly 1bn euros will be used to convert short-term liabilities into long-term ones.

Abstracted from Die Welt