Deutsche Post DHL today ruled out any possible sale of its Global Forwarding and Freight Division (DGFF) following media speculation that it might be considering a partial or full sell-off of its heavily loss-making freight forwarding business.
Frank Appel, CEO Deutsche Post DHL Group, declared: “To clear up false rumours and to be unequivocal, Deutsche Post DHL Group is not exploring the sale of our Global Forwarding and Freight Division. We have a market leading position in this business with a strong brand, an unmatched global network and the best people in the industry. DGFF is core to our company and we see a good future for it as part of DPDHL Group”.
The media statement follows a Reuters report last week which claimed that the German postal and logistics group “is looking at the possibility of spinning off its ailing freight forwarding operation or making an outright sale”.
The news agency cited “two informed sources” who said the company might “seek a partnership, create a joint venture or sell either part or the complete operation”. One option under consideration, according to the report, was apparently a potential sale to Japan Post, which aims to expand internationally and already acquired Australia’s Toll Group last year.
DHL Global Forwarding (DGF), the world’s largest air freight forwarder and number two in ocean freight, plunged into the red last year due to a failed global IT upgrading that forced DP DHL Group to write off €345 million in one-off charges. The DGFF division made a loss of €280 million in the first nine months of the year, including €337 million in the third quarter, mostly due to high costs of turnaround measures.
In 2014, the freight division already saw its operating profit drop by 39% to €293 million on flat revenues of €14.9 billion, which represent about one quarter of DP DHL’s total turnover.
DP DHL Group will present its full results for 2015 on March 9.
