Deutsche Post DHL chief executive Frank Appel is hoping for a sharp recovery from the currentrecession but has played down speculation that the group is planning to bid for a stake in Royal
Mail.Addressing a journalists’ association in Frankfurt, Appel described the current economicslump as “completely irrational” and predicted that the recovery could come as rapidly as thedownturn at the end of 2008 and start of this year. “This is a V-shaped recession,” he declared.Business in March had been better than in the first two months of 2009, although this could havebeen due to the later Easter this year, German and international media reported.
Appel justified his hopes for a rapid recovery, saying: “Should there be initial signs for arecovery in the real economy, then many companies are likely to quickly gear up their production.”This recovery would be supported by fears of subsequent price rises for raw materials and energy,he noted.
Nevertheless, Deutsche Post DHL is preparing itself for an extended period of recession byreducing variable costs while trying to avoid job losses, Appel said. He added that he was verysatisfied with the progress of the group’s cost saving measures and was confident of saving atleast €1 billion by 2010.
The Deutsche Post CEO declined to say directly whether the company would make a bid to buythe 30% strategic holding in Royal Mail that the UK government plans to sell, and noted thatinternational mail activities are always very risky due to high labour costs. “There is nostrategic necessity for us to make a large acquisition,” Appel commented. However, he added: “I ama businessman and believe that if a good opportunity presents itself, one should grab it.”
Deutsche Post aims to compensate for the electronic substitution of traditional paper-basedmail volumes by developing “online mail” for secure electronic delivery with clearly identifiablesenders and recipients, Appel added.
