Tag: Worldwide

DHL reduces loss in US Express

Posted by | Nov 9, 2006 | |

Deutsche Post announced yesterday, 3rd Quarter results up by a third on 2005. But the performance of its US Express division is a continuing cause for concern, dragging the rest of the Express business and the whole group down.

Headline growth was impressive, with consolidated revenue up by 35% to *14,887m and EBIT up 40% to *1.03bn compared with the same period last year. But these figures are flattered by the acquisition of Exel in early 2006.

The logistics business continues to perform reasonably. The Exel acquisition is running smoothly and the Division as a whole is gaining market-share. Revenue for the nine months was up to *16 billion, with *8.6billion coming from the acquisition of Exel. EBIT for the year-to-date was *513 million.

The problem area remains Express. The US Express division continues to lose money, although losses have been reduced by what was called a “three digit million euro amount”. CEO, Klaus Zumwinkel stated both in comments to analysts and in an interview earlier this week that the US Express business had 10% market share and that if it achieved 12% “we would be very happy”. Elsewhere the company described growth in Express as strong, with double-digit growth in revenue in Asia-Pacific. Overall results for Express revenue were down over Q3 2005 by 2.8% at *3,755million but EBIT was back in positive territory at *86million.

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UPS plans more international acquisitions

Posted by | Nov 9, 2006 | |

UPS will continue to buy express and parcel companies around the world to expand its highly profitable international business, according to senior executives. At the same time, it aims to grow its air freight and supply chain logistics activities to penetrate its large customer base more deeply.

“We will make acquisitions as we see fit around the world,” CEO Mike Eskew told the company’s November 8 Investor Day conference. Chief Financial Officer Scott Davis added that UPS saw “ acquisition opportunities” in the global small package business but stressed the company would be careful in selecting these takeovers.

Davis pointed out that UPS aimed for International to grow to 33% of operating profits by 2010 compared to 24% in 2006, with supply chain doubling to 7% and domestic operating profits dropping from 73% to 60% of overall operating income. UPS aimed to maintain or extend its international profit margins and maximise international operating profits, he added.

David Abney, head of UPS’s international business, said in a presentation that Europe now generated about 50% of UPS’ international revenues, ahead of 30% for the Americas (including US exports) and 20% for Asia. In Europe, UPS aimed to grow organically and through selective acquisitions, while deepening customer relationships and differentiating products in core markets such as Germany and the UK.

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UPU Strategy Conference

Posted by | Nov 8, 2006 | |

Universal Postal Union’s Strategy Conference will take place in Dubai from 14 to 16 November 2006. For the first time, the conference will take place outside Switzerland. It will be hosted by the Government of the UAE and Emirates Post. Around 1,000 delegates from more than 130 member countries will participate in the event that will be held against the background of continuous change in the communication sector. Information and communication technologies, globalisation and the movement of populations – universally recognised to be among the most powerful forces to shape the 21 st century.

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Deutsche Post World Net with solid third quarter

Posted by | Nov 8, 2006 | |

Deutsche Post World Net saw a double-digit increase in revenue and earnings in the third quarter. Consolidated revenue rose by 35 percent from 11.028 billion euros to 14.887 billion euros in the period. The integration of logistics service provider Exel and financial service provider BHW as well as organic growth drove this increase. The company now generates 59 percent of total revenue outside Germany. Profit from operating activities (EBIT) rose by 40.1 percent to 1.03 billion euros, including the expected income of 276 million euros from calling the exchangeable bond on Postbank stock in July prior to maturity. In the third quarter of 2005, EBIT was 735 million euros. Consolidated net profit was 537 million euros in the third quarter of 2006 after 412 million euros in the year-earlier quarter. That corresponds to an increase of 30.3 percent. Earnings per share increased to 45 euro cents in the third quarter of 2006 from 37 euro cents in the year-earlier period. In the first nine months of the year, the Group posted 36 percent higher revenues of 44.190 billion euros, including around 10.2 billion euros from acquisitions. EBIT rose by 7.5 percent to 2.588 billion euros.

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Reinventing India Post

Posted by | Nov 8, 2006 | |

In September this year, when Punjab chief Minister Amarinder Singh’s helicopter crash-landed in a remote corner of Gurdaspur district, Punjab, Singh managed to escape with minor injuries but help also arrived in an unexpected form-India Post. Singh may have been whisked away by car but his chopper was grounded completely as its rotor blades and other essential parts were damaged beyond repair. Enter India’s 150-year-old postal network. Two trucks from India Post arrived within 72 hours with more than 7 tonnes of essential components; soon the Pawan Hans chopper was repaired and it took to the skies.

Those who associate India Post with the image of a khaki-clad postman with a bag flung on his shoulder traversing the bylanes of bustling cities or walking through paddy-fields in far-flung villages are in for a pleasant surprise. In fact, the friendly neighbourhood postman is today many more things than just the man who stuffs envelopes and post-cards into your letter box. Soon he could be selling you insurance policies or mutual funds or even fast-moving consumer goods (FMCG) or just sitting you down and doing a market survey for a big corporate giant. Meanwhile, his organisation, India Post, could have metamorphosed from a deliverer of letters and parcels to a full-blown logistics management company that handles supply-chain needs of big business.

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