Speculation has grown in German media this week that Deutsche Post World Net might look for apartner to help turn around DHL’s loss-making US business. But suggestions that the group might be
broken up have been firmly rejected.The developments follow DPWN’s admission at its Q3 results press and analysts’ conferences onNovember 8 that the recent financial recovery for DHL’s heavily loss-making US business had haltedin the third quarter due to the slowing US domestic economy. DPWN chairman Klaus Zumwinkel and newCFO John Allan stated that they no longer expected the business to break even in 2009 as planned,and were working on a new US strategy to be presented in January. DPWN is looking at all aspects ofDHL USA’s operations to see how the financial improvement can be “re-started” and, in the words ofAllan, there are “no sacred cows” in terms of how to achieve this.
The German daily Frankfurter Allgemeine Zeitung reported on November 12 that DPWN isconsidering seeking “a partner company” to close gaps in the US network and reduce costs. Investorswere losing patience with the US losses which analysts put at a three-digit million euro figure peryear, it commented. One option could be to cooperate with the US Postal Service but more likely wasa cooperation with a private firm, the newspaper wrote. No source was given for this information.
Meanwhile, UK transport industry newspaper IFW reported this week that DPWN board member andhead of logistics, Frank Appel, opened a presentation to a logistics conference in Brussels bydenying any plans to break up the group. Customers wanted more integrated solutions, not less, hecommented.
