TNT NV said Karstadt Quelle AG has renewed and expanded a five-year contract worth over 100 mln eur with a unit of TNT’s Mail division, for the distribution of a variety of parcel consignments. From 2006 onwards, it will deliver several million parcels each year for various KarstadtQuelle units in the Netherlands, including Quelle Nederland, Neckermann Nederland and Bonaparte.
Read MoreGermany’s postal regulator supports ending Deutsche Post’s monopoly for delivering standard letters by the end of 2007, it said on Thursday. Deutsche Post had shown that it can hold its own “despite steps in the past toward liberalisation of the letter market,” said Matthias Kruth, the head of the regulator that oversees postal, gas, electricity and telecoms operations in Germany. The regulator therefore saw “no reason not to let (Deutsche Posts’s) exclusive licence run out on Dec. 31, 2007,” he added. The German postal market is worth 23 billion euros (USD27.7 billion) a year in sales at present, Kurth said, adding that Deutsche Post accounts for about two-thirds of that.
Read MoreDeutsche Post on Wednesday upped earnings guidance after closing its GBP3.8bn (USD4.5bn) deal with UK logistics group, Exel. The company now expects operating profit to reach EUR3.7bn compared to earlier guidance of EUR3.6bn. The company is set to benefit from reduced costs for health care as a result of new legislation relating to health insurance which will reduce its costs by about EUR70m a year.
“As a one-time effect in 2005 the reduction in our annual obligation to fund future shortfalls led to a reversal of health care provision with a positive earnings before interest and tax impact of of about EUR1bn.”
But Deutsche Post added that the impact would be offset by EUR0.7bn of new provisions for new “optimisation measures”, such as the creation of a new global corporate services division, creating a net benefit of about EUR0.3bn.
Read MoreDeutsche Post World Net today completed the acquisition of U.K. logistics company Exel plc, becoming the global No. 1 in air freight, ocean freight and contract logistics. Just one month after Exel’s shareholders welcomed the offer, the company’s equity capital was transferred in its entirety to Deutsche Post World Net. The combination of the two companies creates a group with some 500,000 people and about 55 billion euros in annual sales. “This acquisition marks a historic step for Deutsche Post World Net. By bringing together these two powerful, high-quality organizations, we are creating the largest logistics company in the world. Our Group will set the future pace in the forwarding and supply chain industries, enabling us to serve even better the global needs of our customers,” said Deutsche Post Chief Executive Officer Klaus Zumwinkel. “The transaction has been carried out in a very positive and constructive atmosphere. Within very short time, our two management teams have developed a deep understanding and mutual trust. Our top priority now is to combine DHL Logistics and Exel in a rapid and efficient manner.”
Read MoreDeutsche Post AG said its full year EBIT will reach at least 3.7 bln eur, up from its earlier 3.6 bln eur forecast because of a reduction in its health care provisions. It said that the reversal of these provisions will have a positive impact of 1.0 bln eur on this year’s EBIT result. However, this impact will be partially offset by 0.7 bln eur in new provisions relating to unspecified ‘optimisation measures’ and the creation of a new global corporate services divisions. In total, these effects will have a positive impact of 0.3 bln eur.
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