After publishing its 2007 financial results, Deutsche Post World Net yesterday announced at thepress conference in Bonn, Germany, that it would present its approach for its loss-making DHL
Express delivery business in the United States in May and decide on the uncertain future ofDeutsche Postbank soon, according to various media reports.The company recorded a net income of EUR 255 million ($390million) for 2007 which equals aprofit drop of 61 % for the fourth-quarter compared to 649million a year ago. This result is mainlydue to the EUR 600 million writedown of U.S. asset values at DHL Express unit in the United States.
“DHL Express lost market share in U.S. domestic air operations”, said John Mullen, head ofthe express unit, at the press conference in Bonn yesterday.
The newly appointed DPWN CEO Frank Appel, who took over last month after Klaus Zumwinkelresigned amid a German tax-evasion probe, is faced with turning around DHL’s U.S. express-deliveryunit, which includes the former Airborne Express Inc.’s ground operations acquired in 2003 for $1billion, news agency Bloomberg further reported.
“Deutsche Post will stay in the U.S. and expects to present a plan for the division there inMay”, Appel said during the press conference.
Axel Funhoff, an analyst at ING Groep NV in Brussels, further commented on the future of theDHL US business unit: “We believe that the U.S. domestic business will be scaled down significantlyand outsourced where possible”.
A turnaround in the U.S. was hampered by delivery delays at a new package-sorting hub in 2005and slowing economic growth in late 2007.
As for Deutsche Postbank AG, the company said it would continue to review options forDeutsche Post’s retail bank in Germany which has branches in the same post offices that its parentcompany operates.
Klaus Zumwinkel indicated last year that Deutsche Post may decide on a sale of Postbank in2008 which has a market value of EUR 10 billion. Deutsche Bank AG and Commerzbank AG,
Germany’s two biggest banks, have both said they would like to buy the unit.
“Postbank is Germany’s leading retail bank and thus a very attractive takeover opportunityfor other banks,” the company outlined in its presentation to shareholders that accompanied itsearnings release.
