Deutsche Post DHL Group addresses potential earnings exposure

Deutsche Post DHL Group is writing down €345m in its Global Forwarding business as it decides to move away from its New Forwarding Environment (NFE) system and instead implement a step-by-step replacement and upgrade of its IT set-up. In a statement issued yesterday (28 October) Deutsche Post DHL Group said: “Given the decreased likelihood that DHL Global Forwarding will be able to realize benefits from the New Forwarding Environment (NFE) system in its current state, the Group will recognize in the result of the first nine months of 2015 one-off effects of a total of €345m. This comprises a write-down of €308m of assets capitalized in relation to NFE and €37m of provisions which cover expenses for an expected roll back of NFE in the countries where it was piloted.”

The statement added: “Deutsche Post DHL Group is also taking further action to address potential earnings exposure by recognizing in its outlook for 2015 further one-off effects of around €200m. This exposure relates mainly to the current reassessment of legal and regulatory aspects in the Post – eCommerce – Parcel (PeP), Express and Global Forwarding, Freight divisions.”