Tag: Deutsche Post

Deutsche Post World Net 2007 underlying EBIT at 3.8 billion euros

Posted by | Mar 6, 2008 | |

Deutsche Post World Net reported earnings before interest and tax (EBIT) of 3.8 billion euros before non-recurring effects for the 2007 business year, an increase of 8 percent compared with the year-earlier level. Underlying EBIT was in line with the Group’s business expectations and guidance. Reported EBIT was 17 percent lower at 3.2 billion euros following a non-cash asset writedown in the EXPRESS Americas division. Revenue increased 4.9 percent to 63.5 billion euros in 2007.

Appel reiterated the Group’s financial target for 2008 of around 4.2 billion euros in underlying EBIT and confirmed the Board of Management will propose to raise the 2007 dividend by 20 percent to 90 euro cents. “Our focus remains on organic growth and improving cash generation and cash payout to shareholders,” Appel said.

Net income after minorities declined 28 percent to 1.4 billion euros in 2007, mainly due to the writedown on fixed assets in the EXPRESS Americas division in the fourth quarter. As a result, earnings per share were at 1.15 euros compared with 1.60 euros. In the fourth quarter, net income declined to 255 million euros from 649 million a year earlier.

Fourth-quarter earnings per share totaled 21 cents, down from 54 cents. Revenue increased by 3.9 percent in the quarter to 16.97 billion euros from 16.3 billion euros. Operating cash flow after changes in working capital was at 2.8 billion euros at the end of 2007 compared with 2.2 billion euros a year earlier, and free cash flow totaled 1.9 billion euros, up from 1.3 billion euros, helped by working capital improvements.

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Dutch aim for postal liberalisation on July 1

Posted by | Mar 4, 2008 | |

The Dutch government hopes the postponed liberalisation of the mail market, originally due in January, will come into force on July 1 depending on developments in Germany and Dutch labour negotiations.

Dutch Junior Economy Minister Frank Heemskerk said in a letter to parliament published late on Monday he hoped to have a clearer view on both matters by the middle of April.

“I hope it can then be concluded, taking into account the necessary caution, that it remains possible for the new postal law to come into effect on July 1, 2008,” he said.

The Netherlands decided in December to postpone the full opening of its mail market partly because of fears that a German minimum wage for postal workers impedes competition there after Deutsche Post lost its remaining monopoly on Jan. 1.

Dominant Dutch mail company TNT had hoped to expand in Germany but says it cannot compete effectively with Deutsche Post because the minimum wage per hour is too high.

TNT has sued the German state at a court in Berlin and Heemskerk said he would report back to parliament on an expected ruling in early April after a hearing on March 7.

He also noted Dutch postal companies were due to hold talks with workers in March about labour conditions in the Netherlands and said he would follow these talks closely.

The FNV trade union says the Netherlands should only open its postal market to full competition when all workers get minimum wages and have labour contracts.

TNT’s workers have employment contracts, but rivals privately-owned Sandd and Deutsche Post’s Dutch unit Selekt Mail usually do not offer contracts and pay postal workers by the number of items delivered.

Rabo Securities said in a note it did not expect the government would meet the July 1 date as the outcome of the German court case was highly uncertain and it doubted whether Dutch unions would reach a deal in time.

“From sources in the market, we understand that negotiations are progressing slowly. Especially the challengers Sandd and SelektMail are unwilling to sign a collective labour agreement, as long as there is no clarity on the liberalisation,” it said.

TNT has the remaining monopoly for letters up to 50 grammes in the Netherlands, estimated to be worth about 1 billion euros (USD 1.5 billion) in 2007.

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Deutsche Post World Net strengthens logistics business (GER)

Posted by | Mar 4, 2008 | |

In its meeting on March 4, the Supervisory Board of Deutsche Post AG decided on changes to the Executive Management Board. Effective immediately, Deutsche Post World Net will separate the Logistics corporate division into two operating units. Supply Chain will be led by Bruce Edwards (52), while Hermann Ude (46) will run the Global Forwarding and Freight business unit.

Both new business units have annual revenues exceeding 13 billion euros. As the Group’s biggest division both in terms of revenue and number of employees, Logistics from now on will be represented by two members on the Executive Board. Before being named Chairman and Chief Executive Officer of Deutsche Post World Net, Frank Appel (46) was in charge of the Logistics corporate division.

The decision to split Logistics into two business units is a structural move without any immediate costs or gains associated with it and there will be no changes to the Group’s reporting structures for the time being. Supply Chain and Corporate Information Solutions has annual proforma revenue of more than 13 billion euros and focuses on long-term, complex outsourcing agreements with large customers. Global Forwarding and Freight is an asset-light business with annual.

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India Post plans global tie-ups to take on MNCs

Posted by | Feb 29, 2008 | |

India Post is all set to enter into a series of global partnerships to compete with international money services companies such as Western Union and global courier companies like FedEx. The postal department is in talks with its counterparts in the US, Switzerland, France, and Oman, among others, as it plans to tap the expertise of these countries in specialised financial services and replicate such offerings in India.

The logic: With nearly 82,000 post offices being computerised, the strong IT base will enable India Post to offer several value-added services in addition to full-fledged banking services. Partnerships with global majors will enable India Post to launch these value-added and modern ICT-based services.

Besides, with millions of expatriate workers of Indian origin in several countries sending huge remittances back home, the postal department is also going all out to tap this segment. More so, considering that India Post has the largest possible network of 70,000 branches in rural India alone.

For instance, India Post has already tied up with the postal service department of the UAE for speedy transfer of money orders between the two countries. While this facility is currently available only to a few sourthern states, it will soon be extended to all states in a phased manner.

The process to get into global partnerships was set rolling last year. In November 2007, India Post signed an MoU with Deutsche Post where both organisations agreed to create a multi-layer relationship. The MoU envisaged partnerships in the field of conveyance and distribution of mails, logistic and warehousing operations and financial services.

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Teamsters, DHL in Tentative Labor Deal

Posted by | Feb 28, 2008 | |

The Teamsters union has reached a tentative labor agreement with DHL Express, a unit of Deutsche Post, the two sides said on Wednesday.

“This agreement is truly historic,” Brad Slawson, chair of the Teamsters national negotiating committee, said in a statement. “It is the first new national master agreement negotiated in the transportation sector in decades.”

The deal will be reviewed by the Teamsters and DHL members, who will then vote on it. The Teamsters said the deal would cover thousands of DHL employees nationwide.

“”We’re pleased that the parties have reached a tentative agreement and look forward to its ratification,” said DHL spokesman Richard Gibbs.

DHL has around 20,000 employees in the United States.

The company has struggled to make headway in the U.S. market, which is dominated by United Parcel Service Inc and FedEx Corp.

Most of the UPS work force is unionized, while only FedEx’s pilots currently have union representation.

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