Tag: Deutsche Post

Deutsche Post, the German postal service operator, has reacted to costly demands by the EU commission and the German postal and telecommunications regulator with the introduction of a five-point plan, the fourth point of which is the so-called ‘Star Programme’, launched in February with the aim of boosting company’s share value. The company is to appeal against a demand by the EU that it repay state subsidies of 850m euros, although this is unlikely to lead to the postponement of the repayment. The costs of the reduction in postage charges demanded by the postal regulator are to be balanced by job cuts and a reduction in the number of post offices and mailboxes.

Deutsche Post, the German postal and logistics operator gearing up to enter the UK market, yesterday warned its profits would slump by 10%-15% this year because of the weak global economy.
The company, which has applied for an interim UK licence to deliver some 40m pieces of business mail a year, said net first-half earnings fell 85% to just euros 155m (pounds 97m) after the EU ordered it to repay euros 572m in state aid.
The group, which is expected to make serious inroads into loss-making Consignia’s previous UK monopoly from early next year, also expects annual earnings to fall euros 300m over the next five years because of price cuts ordered by the new German regulator.

The German post and telecommunications regulator has ruled that Deutsche Post, the German national postal service operator, must reduce postage charges for letters weighing up to 200 grams and for postcards with effect from 1 January 2003. This follows a decision by the regulator that the company must reduce charges in all areas of activity in which it has a monopoly by a total of 7.2 per cent by 2007. The company also has monopolies in printed and advertising material. Deutsche Post intends to present its proposed new tariffs to the regulator by mid-August, and the regulator will then examine these over a two-week period. Martin Hellwig, chairman of the German monopolies commission, believes that the reduction planned is too little, and recommends a cut by up to 63 per cent.”

Deutsche Post World Net said it will show a net loss for the second quarter after it set aside €850 million ($833 million) to cover the repayment of illegal state subsidies.
Industry analysts pegged the loss at between $196-294 million for the quarter.
Deutsche Post set aside the “special reserve” after the European Union in June ordered it to repay $543 million to the German government after finding that DP used profits from its domestic mail monopoly to subsidize its unprofitable parcel delivery unit.
Deutsche Post will release earnings results on Wednesday.

German regulators said Monday they will go ahead with price cuts in the postal service that Deutsche Post says may force it to cut 10,000 jobs and shutter 1,000 post offices.
Post and telecoms regulator RegTP confirmed the plans after allowing a little more than two weeks for consultations with affected parties. The price cap covers the period running up to the end of Deutsche Post’s monopoly on letter delivery in 2007.
Deutsche Post declined to comment on the decision ahead of a news conference Wednesday, when it will present its first-half earnings. But chief executive Klaus Zumwinkel warned earlier this month that the price curbs could spark drastic cuts elsewhere.