DPWN addresses shareholders to calm rumours
Deutsche Post World Net’s (DPWN) senior managers have been energetically defending the strategic direction of their company, after the publication of their nine-monthly results last week which saw revenue rise by 5.3pct and EBIT (Earnings Before Interest and Tax) after exceptional items fall by 2.5pct.
In particular, the new chief financial officer, John Allan, has been thrust forward to help articulate the new ‘capital markets programme’. Entitled a “Road Map to Value” this is designed to underline DPWN’s commitment to better returns to shareholders. It also emphasises what is an important change in direction for DPWN’s corporate strategy. DPWN’s CEO Klaus Zumwinkel articulated this as “following an expansion phase to build the leading logistics company worldwide, we’re now entering a new era…… We are implementing a series of long-term measures in order to raise profitability, generate more cash, increase payouts to shareholders and improve transparency.”
For a company as acquisitive as DPWN this is an interesting statement, indicating that the strategy of global expansion is being reigned-back, although targeted acquisitions are still being made.
Underlying DPWN’s concern is disenchantment amongst institutional investors outside Germany over the performance of the company’s shares. This is leading to mutterings on stock markets about the merits of a break-up of DPWN, particularly through a buy-out from a private equity house.
