Tag: DHL

Deutsche Post names new Head of ailing DHL U.S. unit

Posted by | May 6, 2008 | |

Deutsche Post AG replaced the head of the DHL Express unit’s unprofitable U.S. operations as the company tries to turn the business around.

Ken Allen, 52, previously Chief of DHL Express in eastern Europe, the Middle East and Africa, is taking over from Hans Hickler, Chief Executive Officer Frank Appel said at the annual shareholders meeting in Cologne, Germany, today. Hickler will remain on DHL Express’s global management board, said Nicole Mommsen, a company spokeswoman.

Appel is faced with reorganizing DHL’s U.S. express- delivery unit and is under pressure to decide whether to dispose of the company’s majority holding in the Deutsche Postbank AG retail bank. Bonn-based Deutsche Post will present a plan for the U.S. business by the end of May, Appel reiterated today. The CEO also stuck to earnings targets for this year and 2009.

“U.S. express business remains unprofitable and thus not satisfactory,” Appel said. Deutsche Post is reviewing all options for the unit, though a pullout from the U.S. market is “not an option.”

Deutsche Post fell as much as 22 cents, or 1.1 percent, to 20.59 euros in German trading and was down 0.2 percent as of 11:50 a.m. in Frankfurt. The stock has declined 12 percent this year, valuing the company at 25.1 billion euros (USD 38.9 billion).

DHL is the fourth-largest shipper of packages in the U.S., with 5.9 percent of the market, according to data compiled by SJ Consulting Group Inc. UPS is the biggest with 52 percent, followed by FedEx’s 30 percent and the government-owned U.S. Postal Service with 12 percent.

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Deutsche Post Annual General Meeting 2008

Posted by | May 6, 2008 | |

Acting in his new role as Chief Executive Officer of Deutsche Post World Net, Frank Appel held his debut presentation in front of around 3,500 shareholders.

The Board of Management and the Supervisory Board are proposing a dividend increase of 20 percent to 90 euro cents. That amounts to a payout ratio of 78.2 percent of the consolidated net profit attributable to Deutsche Post AG’s stockholders. Since the company’s IPO, the dividend has risen by an average of around 19 percent a year. “Like in the past, we will stick to our dividend policy and allow our shareholders to participate in the positive business performance,” Appel promised. Deutsche Post’s dividend is tax-free for shareholders living in Germany.

The Group has made good progress with the capital market program Roadmap to Value introduced in November. It is already clear that the goal of generating at least 1 billion euros from the sale of real estate by 2009 will be exceeded. In addition to property sales worth 350 million euros that have been agreed on since November, Deutsche Post World Net a month ago announced the sale of about 1,300 properties for 1 billion euros to U.S. investor Lone Star.

In 2007, revenue rose 4.9 percent to 63.5 billion euros. EBIT before non-recurring effects climbed 8 percent to 3.8 billion euros, meeting the Group’s expectations and forecast.

Reported EBIT dropped 17 percent to 3.2 billion euros following a non-cash asset writedown in the EXPRESS Americas business. As a result, net income after minorities fell 28 percent to 1.4 billion euros, and earnings per share dropped to 1.15 euros from 1.60 euros.

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Battle of the Brands: UPS vs. FedEx

Posted by | May 5, 2008 | |

The largest player in the U.S. overnight package delivery business is attempting to increase its market share in the fast-delivery business next month. USPS is barely holding on to its 32 pct market share in the business, as FedEx and UPS continue to push the envelope at 31pct and 25pct market share, respectively. For the first time, shippers using Express Mail, Priority Mail, and several other parcel services will be able to get lower rates for large- and medium-volume contracts, according to the agency. Will UPS and FedEx need to cut their prices further to compete with the USPS?
Large Rate Increases For 2008
This year, FedEx and UPS announced that rates for ground packages would increase an average of 4.9pct on the ground and 6.9pct in the air (minus a 2pct cut in fuel surcharges, creating a 4.9pct increase in the air as well). So what does this mean for you? The key term we need to acknowledge is averages. Rates for certain packages will increase more than 4.9pct, while other shipments will increase less than 4.9pct , all depending on the characteristics of the package, the distance traveling as well as the service you use (ground or air).
Fuel Surcharges
If you’ve studied the fine print of the pricing that both FedEx and UPS use, the key is in the fuel surcharges. Don’t let the 2pct cut in air fuel surcharges trick you into thinking you’re saving, because you’re not. In a nutshell, carriers tack on a 0.5pct surcharge for every four cents of an increase in jet fuel prices — starting at the base price of $1.14 a gallon. With jet fuel prices up nearly 70pct since April of last year, you’re going to be paying more to for air delivery regardless of which company you use. For every eight cent increase in standard fuel prices, there is a 0.25pct jump in the fuel surcharge — starting at the base price of USD 1.50 a gallon. The price of gas has jumped nearly 50 cents over the past year, so going ground will also hurt your wallet.
The data clearly shows a significant increase from last year’s rates. But what really grinds my gears is that both FedEx and UPS have exactly the same rates for four out of six delivery services. So where can you find a cheaper overnight service?
A Possible Alternative
The fourth-largest overnight service is DHL, owned by Deutsche Post World Net AG, and holds a 9pct market share in the United States. In the same 2008 study, DHL’s prices to Huntington Beach were slightly cheaper than UPS and FedEx. Earlier this year, however, there were reports that DHL might leave the US shipping market due to considerable losses since 2004. One industry expert believes the U.S. shipping industry needs DHL to stay; fearing competitor prices would rise with DHL out of the picture.
The Bottom Line
With pricing so similar, choosing a delivery service really depends on who you can trust getting your product where it needs to be on time.

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DHL wins exclusive U.S. and international express shipping contract with Lord and Taylor

Posted by | May 5, 2008 | |

DHL announced that it has been chosen as the exclusive U.S. and international express shipping provider for Lord and Taylor, one of the nation’s leading department stores. Lord and Taylor chose DHL in order to improve distribution for its retail store network throughout the U.S., enhance merchandising capabilities for its new Internet presence, and support its on-going brand campaign that spotlights the company’s reputation for quality, customer care and style.

DHL will handle all U.S. and international package shipments for Lord and Taylor, including shipments to and from Lord and Taylor’s distribution center in Pennsylvania and 47 retail stores in nine states throughout the U.S. Through the new agreement, Lord and Taylor can also offer store customers the added convenience of delivery of in-store items purchased at any Lord and Taylor store. DHL will deliver these items upon request by customers to a business or residence.

Last fall, Lord and Taylor launched its new Internet storefront as part of an ongoing brand campaign, featuring the company’s high-quality merchandise, apparel and accessories. DHL integrated its shipping systems with Lord and Taylor’s consumer ordering processes, providing a seamless order management system for Internet orders. With the DHL shipping systems, consumer purchases at lordandtaylor.com automatically generate inventory order requests to a nearby Lord and Taylor retail store, fulfillment house or its distribution center. DHL provides pickup service from any one of these sites, with consumer orders delivered by as early as the next morning, depending on the service requested.

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Deutsche Post World Net: Preview of the first quarter 2008

Posted by | May 5, 2008 | |

Business in the first quarter of 2008 was very satisfactory with underlying profits making progress year on year and being in line with our targets and guidance. There were two fewer working days in the first quarter, which will reverse in the second quarter. Last year’s first-quarter LOGISTICS result included a 59 million-euro profit from the disposal of Vfw.

Volume growth and general trends, particularly in the LOGISTICS and EXPRESS Business Divisions, continued to be similar to the latter part of 2007. New order intake from major accounts (Global Customer Solutions) and from LOGISTICS generally was encouraging.

In its customer business Deutsche Postbank recorded, adjusted for the impact from capital market turbulence, a good operating result in line with plan.

The company continues to make progress in refining our plan to improve performance substantially in the U.S. EXPRESS business. The company said it will make a further announcement on the initiative, as guided, by the end of May.

Detailed first-quarter results will be published, as planned, on May 14, 2008. A conference call for investors will be held at 2 p.m. (CEST) that day.

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