Stable dividend rate of 30 percent at Deutsche Post

The management of Deutsche Post, the German state postal service operator, has said that German legislation governing the postal sector already conforms to EU guidelines. Experts from the regulatory body for the postal and telecommunications sectors and from the economic affairs ministry are said also to be of this opinion. The company does not therefore expect to lose its exclusive licence for letter delivery before the end of 2007, in spite of the recent demand by the EU that the German government alter postal legislation, arguing that aspects of the letter monopoly contravene competition guidelines.

To ensure that letter delivery contribute a stable 2bn euros to group profits, management intends, within reason, to take advantage of the gradual deregulation of the market. The group will aim for its US express service DHL/Airborne to break even in 2005. DHL/Airborne showed a loss of 284m euros last year. A dividend of 0.44 euros per share is to be paid out for 2003, compared with 0.40 euros for the previous year. This represents a stable dividend rate of 30 per cent.