Deutsche Post World Net CEO Frank Appel has predicted that the forthcoming recession will be “sharpbut short” and reaffirmed the group’s growth plans in Asia. The company is meanwhile taking on more
postal delivery staff in Germany to ensure quality levels.Appel’s comments follow FedEx’s downgrading of its 2008/09 financial outlook at the start ofthis week and a sharp downturn in the express businesses of all four integrators (DHL, FedEx, UPSand TNT) due to the impact of the international economic slowdown.
In an interview with German newspaper Frankfurter Allgemeine Zeitung (FAZ) publishedyesterday, Appel said: “I’m one of the few CEOs who are not so pessimistic. I’m expecting a sharprecession which will be over relatively quickly.” DPWN had no reason at present to adjust itsforecast of operating profits of €2.4 billion next year, he stressed.
The group had seen a downturn in air freight volumes which was now spreading to oceanfreight, and pressure on margins was highest in the express business, Appel commented. But DPWNremained well-positioned overall since the German mail business was the main profit-maker and lesssusceptible to crises, the group was less dependent on the US market and it also had businessessuch as contract logistics that were less impacted by downturns, he pointed out.
Asia would generate a “high, single-digit” growth rate this year, the DPWN CEO said. However,growth in the region in the second half of the year was lower than in H1, and “we are not seeingthe usual peak in orders for Christmas business”, he commented.
DPWN would continue to make minor acquisitions in Asia but there would be no major deal inthe region since DHL was already the market leader and “such acquisitions would be so large that wewould have to cope with another mega-integration again”, Appel added. Overall, Asia’s contributionto DPWN revenues would grow from the present 15% towards “20% and more” by 2012, he said.
Separately, Deutsche Post announced today it will increase the number of mail delivery staffin Germany to ensure quality levels. The German mail regulator had previously criticised thepresent quality of mail delivery in various parts of the country.
The postal operator said it will extend the temporary contracts of 1,000 additional postaldelivery staff from February 2009 until the end of May 2009. In addition, it will offer 1,300former trainees full-time contracts. “We are sending a clear signal to our staff and customers, andwant to achieve a visible improvement in deliveries with these measures,” said Walter Scheurle,board member for personnel.
