Tag: International

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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USPS' repositionable notes may become permanent offering

Posted by | Mar 5, 2008 | |

Repositionable notes — colloquially known as sticky notes — may soon become a permanent US Postal Service offering, if approved by the Postal Regulatory Commission.

The USPS filed notice with the commission on February 27 requesting that the notes be made permanent. The commission has 15 days to respond, according to Carlton Shufflebarger, manager of direct mail for the USPS.

The notes are useful for advertisers who want to get their message across through the mail, because people can peel the three- by three-inch notes off mail pieces and stick it somewhere else, giving the message a life beyond the mailpiece, Shufflebarger said.

The USPS first introduced repositionable notes in April 2005 as a one-year experiment, which was renewed several times. The USPS’ board of governors recently voted and agreed that it should be made a permanent service, Shufflebarger said.

The commission is accepting comments on whether the proposed offering is consistent with the Postal Accountability and Enhancement Act of 2006. Comments are due to the commission by March 13.

Repositionable notes can be placed on the outside of First-Class mail, catalogs, magazines and newspapers. Since the program started in 2005, the notes have been used on 306 million pieces of mail, Shufflebarger said.

In addition to the cost of postage, the current price points for the notes are a half-cent per piece for First-Class Mail and 1.5 cents per piece for periodicals and Standard Mail, according to the USPS.

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DHL opts for Crawford dock management system

Posted by | Mar 5, 2008 | |

DHL Exel has chosen a dock management system from Crawford for delivery and warehouse control at its logistics centre in Roserberg, Sweden.

Crawford Dock Management is a piece of software and a decision-support system for the monitoring, follow-up and control of warehouse and truck traffic in connection with goods collection and delivery at complex logistics centres. The result is improved efficiency, security and reduced waiting times for the trucks.

The system consists of four modules which provide navigation, follow-up, service and security. The deal includes a complete system with all modules.

“We have operated with Crawford as a strategic partner for many years. With this expanded installation, we can achieve both considerable efficiency savings and improvements in the quality of our customer offering,” says Henry Svensson, DHL Sweden.

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