German Deutsche Post reports continuation of first quarterly trend

Deutsche Post, the German national postal service operator, saw turnover up by 0.7 per cent to 9.77bn euros, and ebita up by 5 per cent to 951m euros, for the first quarter of 2003. Business for April is also reported to have shown a continuation of the favourable development reported for the first three months. Management has confirmed the annual target for ebita of at least 2.8bn euros, compared with 3bn euros for 2002. In view of the company’s obligation to reduce postage charges and the weak economy, this fairly stable development forecast has been viewed positively by analysts.

The company is aiming for a profit margin of 16 per cent from letter deliveries, compared with 17 per cent last year. A margin of 3.2 per cent is targeted for logistics, compared with 3 per cent last year, while, for express deliveries, a 2.5 per cent margin is targeted, compared with 2.2 per cent for 2002. A return on equity of 11.5 per cent will be targeted for Deutsche Postbank, the group’s banking subsidiary, compared with 10.7 per cent for 2002. Shareholders have been critical of the lower return on sales shown by Deutsche Post than those shown by some rivals in the express and parcel forwarding sector. The company is not planning to publish salaries of management board members, in spite of a recommendation in the corporate governance code drawn up by a special committee.