Tag: USA

DHL takes on US rivals at the shop-front

DHL is planning to open a new front in its competition with United Parcel Service and FedEx by launching a chain of retail outlets in the US. The German courier company believes it needs a bricks-and-mortar presence in America to woo customers from the two main domestic operators. John Pearson, vice-president of commercial operations, said DHL had yet to decide how many stores it needed but the number could reach the thousands. “We are in the process of mapping out where we need to beand what is realistic,” he told the FT. The prospect of DHL-branded shop-fronts springing up across the US underlines the company’s ambition to become a significant force in North America. The Deutsche Post subsidiary has secured about 10 per cent of the US parcel market since its Dollars 1bn acquisition of Seattle-based Airborne two years ago. Retail outlets would help DHL strengthen its reach among lucrative small business customers not big enough to receive dedicated pick-up services.

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USPS new five-year plan builds on success

The US Postal Service Board of Governors Tuesday approved the “Strategic Transformation Plan 2006-2010,” initiating the agency’s next strategic phase, building on the successes of the original Transformation Plan, introduced in 2002. “Transformation became the watchword of the Postal Service in 2002,” said Postmaster General John E. Potter. “Our goal was to position the Postal Service to navigate a dynamic market environment and communications landscape successfully. The results speak for themselves.” He noted that postal product and service offerings are marked by innovation, ease-of-use, and accessibility.
Potter said, “We have reduced costs and increased productivity. Our people, the men and women of the Postal Service, have brought service performance and customer satisfaction to record levels.” During the next five years, the Postal Service will remain focused on its core business and those strategies that produce results, he said.

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DHL Moves to Wilmington Hub

Last week DHL moved its Greater Cincinnati/Northern Kentucky operations to a new one million-square-foot facility in Wilmington, Ohio, despite a continuing lawsuit over who has the right to finance the project. Nearly a year ago DHL struck a deal with the Dayton-Montgomery County Port Authority in which the state of Ohio guaranteed a bond financing deal and tax exemptions. But neighboring Clinton County Port Authority sued and two weeks ago a Clinton County judge ruled that the Dayton port authority cannot legally finance the deal. The expanded hub is in Clinton County’s Wilmington Airpark.

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FedEx raises earning hopes

FedEx yesterday increased its full-year earnings forecast following a stronger-than-expected first fiscal quarter. The upbeat announcement erased much of the concern sparked among investors by more sluggish results in the fourth quarter of last year. Shares in the company rose nearly 8 per cent to Dollars 83.15 in response. Fred Smith, chairman and chief executive, said he remained optimistic about the US and world economy despite the impact of record fuel prices and Hurricane Katrina. FedEx and other logistics companies are considered economic bellwethers because of theircentral role in global trade. “We see continued improvement in the global economy. Trade is deepening and global trade is growing faster than (US) gross domestic product,” he said. First-quarter net profit increased by a modest 3 per cent to Dollars 339m, or Dollars 1.10 a share. However, those figures were depressed by a Dollars 79m one-off charge related to accounting changes.

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