The Deutsche Post share price dropped sharply yesterday after financial markets judged the company’s outlook for 2007 as disappointing. The share closed down 4.78% at EUR 22.11 on the Frankfurt stock
exchange.Deutsche Post World Net announced yesterday that it expects EBIT of at least EUR 3.6 billionthis year. In 2006, it increased EBIT by 2.9% to EUR 3.9 billion in 2006 but this figure includedEUR 400 million of special effects. Excluding this figure, EBIT was EUR 3.5 billion last year.
In its 2007 outlook, DPWN said that the mail division should have stable EBIT of about EUR 2billion, the express division should increase EBIT to at least EUR 400 million, logistics shouldincrease its 2006 EBIT of EUR 762 million by about 15%, and the financial services division shouldincrease last year’s EBIT of EUR 1 billion by about 5%.
The group also reiterated its mid-term guidance for 2009 with EBIT planned to grow to atleast EUR 5.2 billion. Mail profits could drop by 10-20% on the 2006 figure of EUR 3.9 billion dueto liberalisation and an expected decline in market volumes. Express profits are planned to grow toat least EUR 1 billion based on a breakeven in the USA, and logistics profits should grow to atleast EUR 1.2 billion. Financial services profits are seen with low growth to at least EUR 1billion.
DPWN said it would review the forecasts for the individual divisions next year once theimpact of full domestic mail liberalisation from January 1, 2008, was clearer.
