Deutsche Post CEO Zumwinkel Confirms 2007 Ebit Guidance

German mail and logistics company Deutsche Post AG at the weekend confirmed its 2007 guidance for earnings before interest and taxes, or Ebit, and despite the uncertain U.S. economy, still sees an increase possible this year.
Chief Executive Klaus Zumwinkel, who was visiting Moscow at the weekend, said he can confirm the outlook now the third quarter has ended; Ebit for 2007 is planned to reach EUR3.6 billion from EUR3.5 billion a year earlier.
Zumwinkel reiterated that it is possible the company will increase its guidance. This was mentioned earlier in the year after the Bonn-based, DAX company delivered its half-year results.
Deutsche Post’s unit Express, like its peers United Parcel Services Inc. (UPS) and FedEX Corp. (FDX) faces a weak U.S. market, said the CEO.
The CEO also confirmed this year’s guidance for the company’s business segments. Express will reach an Ebit of at least EUR400 million, while logistics could reach operating profit of around EUR900 million.
The medium-term goal for the business in the Americas has not been lowered, and Deutsche Post still plans to reach break-even by the end of 2009 in the Americas, he said.
Zumwinkel said his company won’t even in the future provide further details on the development of the business in the Americas, despite his comments for further transparency.
In 2003, Deutsche Post acquired U.S. Express postal service Airborne. After this takeover, the company incurred losses that are valued in the three-digit million euro range. The company said it would break-even on two occasions, but is still to do so.
The CEO has replied to criticism surrounding the losses by saying it is inevitable for a conglomerate with international customers, like Deutsche Post, to do business in the U.S.