Tag: Germany

Deutsche Post World Net will file a complaint with the European Court of Justice.
The decision from Brussels to request 850 million euro in repayments from Deutsche Post practically sets off the entire consolidated net profit. In the first half, this figure is 155 million euros (previous year: a good 1 billion), corresponding to earnings per share of 0.14 euro (0.94).
In the first half of 2002 Deutsche Post World Net’s revenues increased by over 15 per cent to 19.4 billion euro, driven primarily by the takeover of the majority in the worldwide leading express service provider DHL International. The Group’s international revenues rose by over 47 per cent to 7.7 billion euros, representing a 40 per cent share in consolidated revenue. This confirms its rapid transformation from a domestic mail and parcel service provider to a globally leading logistics group.

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.”