ZeitungHermes Logistik Gruppe, Germany’s second-largest logistics service provider for deliveries by businesses to consumers, will in future manage incoming transport to its 65 depots in Germany. Until now, this part of the logistics chain has been provided by DHL Freight, a subsidiary of German postal service operator Deutsche Post.
Read MoreDeutsche Post’s freshly reiterated expansion plans in the US are encountering fierce resistance from the dominant players in the North American parcel delivery market, UPS and FedEx. But US market forces could present a larger and more difficult hurdle than anything that UPS and FedEx can throw at Deutsche Post in court.
Deutsche Post World Net, the German postal and logistics provider, has pledged to prevent its US competitors from derailing its expansion plans in the US package delivery market. Speaking at a press conference announcing the company’s first-half earnings, Deutsche Post’s chief executive Klaus Zumwinkel said business remained strong despite continued economic weakness in Germany. He also reiterated plans to expand into the US delivery market, in what could be viewed as a message for rivals UPS and FedEx.
Read MoreThe international credit rating agency Fitch said it was cutting its rating on the long-term debt of Deutsche Post in the light of the semi-privatised German postal authority’s acquisition of the US parcel delivery service Airborne.
Fitch said in a statement it was cutting Deutsche Post’s debt rating to “A+” from “AA-“, but the outlook was stable and Fitch was therefore removing the ratings from “Watch Negative.”
Read MoreMail and package delivery company Deutsche Post announced a sharp rise in second quarter earnings over 2002 when the company was hit with a massive fine from the European Union.
The company announced a net profit of 150 million (US$172 million) between April and June, compared to net loss last year of 257 million for that period. But in 2002, the company was hit with a 906 million fine from the European Union for misusing German government subsidies that skewed comparison.
Deutsche Post said its earnings were actually lower than expected, damaged by the sluggish global economy. It reported that second quarter sales for this year fell to 9.422 billion (US$10.8 billion) from 9.648 billion last year.
Read MoreDeutsche Post, the German postal and logistics provider, on Wednesday pledged to prevent its US competitors from derailing its expansion plans in the US package delivery market, after lifting its full-year profit forecast on the back of a solid first-half.
Klaus Zumwinkel, the chief executive who has pushed through an ambitious 1.4bn ($1.6bn) savings plan aimed at nearly doubling group profits by 2005, said first-half business was “strong despite the continued economic weakness”.
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