DHL Express restructures French operations
DHL Express is restructuring its loss-making operations in France with the aim of making a profit in the country by 2009 and plans to appoint a new country manager shortly, Express Europe CEO Scott Price told CEP-Research in an exclusive interview.
“France has been the most challenging,” Price said in reference to past integration difficulties in Europe. But reports that DHL might withdraw from France due to the losses were “ nonsense”, he said. “I believe France is on the way to a solid recovery. I believe this will be a very good year.”
Price confirmed a report in German transport newspaper DVZ that the operator has reorganized into three operating companies, DHL Express Services, DHL International Express and DHL Freight. “I believe this is the structure to enable us to achieve profit there by 2009,” he said.
A new country manager will be appointed soon while interim boss Klaus Pfab, brought in last autumn to reorganize the company after two rapid changes of top management, will continue to play a role, Price said.
Asked about potential acquisitions in Europe, the Express Europe CEO commented: “I do not see any need for any major acquisitions in Europe. ” But there might be “bolt-on” acquisitions to extend the company’s position, he added.
Reports of interest in Romanian parcels firm Cargus were “speculation”, Price said. But he noted that Central and Eastern Europe was the operator’s main growth region, especially Poland and Romania.
