Tag: Germany

Deutsche Post CEO mulls tie-up of US express operations with FedEx

Posted by | Mar 7, 2008 | |

Deutsche Post World Net AG’s chief executive Frank Appel is mulling a tie-up of the company’s troubled US express operations with rival FedEx Corp, Financial Times Deutschland reported, without saying where it got the information.

Appel said yesterday he will present the company’s decision in May on the future of the US express operations, which have posted unspecified losses since the company entered the market in 2004.

There have already been repeated talks with FedEx head Frederick Smith, FT Deutschland reported today.

But to retain some leverage, Appel is also looking into a possible tie-up with regional US express mail companies, it said.

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DHL introduces "green" service Asia Pacific

Posted by | Mar 7, 2008 | |

DHL launched an Asia Pacific service allowing clients to offset the carbon emissions generated by transporting their shipments.

DHL said in a statement from its regional headquarters in Singapore that customers who want to use the firm’s new DHL GOGREEN EXPRESS service are asked to pay a 3.0 per cent “green premium” on top of the standard charges.

The company then calculates the carbon emissions generated as a result of transporting the parcel and offset these by reinvesting in environmentally friendly projects such as fuel vehicle technology, solar panels and reforestation.

DHL said customers can choose to send all or just a selection of their shipments under the carbon-offsetting scheme which aims to help reduce the amount of carbon dioxide released into the atmosphere.

Switzerland-based Societe Generale de Surveillance, an independent certifying body, will verify the programme annually to ensure accountability and transparency, DHL said.

Customers will also receive a certificate from DHL yearly stating the total amount of carbon dioxide offset on their behalf. The certificate can be useful for companies reporting how they are cutting their carbon emissions.

The service is available to DHL customers in Europe and this is the first time the company is introducing it in the Asia Pacific.

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FedEx, UPS look to gain if DHL scales back

Posted by | Mar 6, 2008 | |

Analysts expect money-losing DHL will scale back in the United States and could make the announcement as early as today, handing FedEx Corp. and UPS a boon.

If DHL closes terminals and hubs, analysts say FedEx could get 35 percent of the lost business in the air and another 25 percent on the ground.

If the restructuring costs DHL 2 percent of revenue, FedEx stands to gain USD 45 million in business, according to a research note published Wednesday by Edward Wolfe. UPS, which has a more powerful ground network, stands to realize USD 71 million.

DHL is the fourth-largest player in the U.S. overnight package business, with revenues in the Americas for 2008 estimated at USD 2.3 billion.

With 9 percent market share, DHL trails the U.S. Postal Service, (32 percent) FedEx (31 percent) and UPS (25 percent).

DHL joined the competitive U.S. overnight business in 2003 when it purchased Airborne Freight for about USD 1 billion, rankling FedEx and UPS, which accused the monopoly Deutsche Post of investing in a U.S. carrier to fight them on their own turf.

Both pressed the issue in lawsuits, which Airborne eventually won.

Airborne was the low-cost alternative to the big players, claiming about 10 percent of the domestic air express market and 2 percent on the ground.

DHL came in promising a threat to the established carriers, but in reality has kicked little sand in their faces, mostly because it has made a series of integration and operational errors that shook customer confidence.

Analysts estimate DHL has lost USD 2.8 billion in North America, including a recent USD 748 million write-down in the United States alone, where it has also announced 600 layoffs.

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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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