Tag: Germany

Deutsche Post World Net AG will try to partly offset the mandatory cuts in its postal rates by introducing new products and charging for some services that are currently free, a spokesman said.
He said the company will try to stem the decline in sales “as much as possible”, but declined to give figures.
Yesterday, Deutsche Post said it expects sales to be down by 1.5 bln eur in 2003-2007 due to postal rate cuts, which were ordered by the postal regulator RegTP.
The company expects sales in 2003 alone to be down by 300 mln eur after the measures are implemented, and said it may close branches and cut up to 10,000 jobs.

Deutsche Post World Net AG (DPWN) denied a report that chairman Klaus Zumwinkel considered stepping down in reaction to postal regulator RegTP’s decision to force cuts in postal rates.
“He did not consider resigning. I can deny that,” Martin Dopychai, company spokesman said.
Citing sources close to the chairman, Sueddeutsche Zeitung reported that it was only due to the persuasion by management board members that Zumwinkel decided not to resign at the beginning of the week.
The chairman was enraged over the forced rate cuts, which in his view are politically motivated just before the general elections in September, said the paper.

Deutsche Post said yesterday that the German regulator’s demand that it cut charges could cut annual profits by {XEU}300m ($296m) over the next five years and lead to the loss of 10,000 jobs.
The decision by RegTP, the German telecommunications and postal regulator, follows a recent order from the European Commission that Deutsche Post repay {XEU}572m in state funding for unfairly subsidising some of its loss-making businesses.
It will also add pressure on the company to diversify and boost its activities in express and logistics services. Deutsche Post still generates about 75 per cent of its profits from monopoly mail services.

Zumwinkel at the beginning of the week considered stepping down as a reaction to the German postal regulator RegTP’s decision to force cuts for postal rates, Sueddeutsche Zeitung reported.
Citing sources close to the chairman, the paper said that it was only due to the persuasion by management board members that Zumwinkel decided not to resign.
Zumwinkel was enraged over the forced rate cuts, which in his view are politically motivated just before the general elections in September, said the paper.