Deutsche Post say UPS talks still on

Deutsche Post said it was still in talks over a possible cooperation with UPS, providing a sought-for update on its drawn-out negotiations.

Deutsche Post said it was still in talks over a possible cooperation with UPS, providing a sought-for update on its drawn-out negotiations.

But a tie-up with other providers was also a viable option, the company said in presentation slides on 26 February.

In 2008, Deutsche Post and UPS agreed to cooperate on air freight in the United States, but talks stalled. The exclusivity of talks between the two companies expired at the end of January.

Deutsche Post has since the start of the talks said it planned to shut down its domestic US express delivery business and cut a total 14,900 jobs there. That move would cut its air capacity there to less than 100,000 shipments per day, from 1.2m previously.

Restructuring in the US was on track, Deutsche Post said, adding it still expected to post an adjusted EBIT loss of $900m at the business in 2009.

In 2008, it booked $2.1bn of an expected total of $3.9bn of restructuring costs. Other DHL businesses were not affected by the changes in the United States.