DP logistics profit boost

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Logistics revenue at Deutsche Post has doubled to £15.5 billion and operating profit has more than doubled to £520m last year.

The Express division reported sales up 2.2 per cent to £12bn producing an operating profit of £222m. In 2005 it lost £15.7m.

But it is still the German domestic mail business that is providing the bulk of the profits. While sales were up 3.2 per cent to £9bn operating profit rose slightly to £1.4bn.

The company said: “To secure jobs in Germany in the future, further steps toward the liberalisation of the mail market must be taken reasonably and with a sense of responsibility.”

Chairman and chief executive Klaus Zumwinkel said: “We are concerned about the political framework for the full opening of Germany’s mail market.”

Deutsche Post believes that the current situation, where there is no agreement on a harmonised liberalisation throughout Europe and where nothing stands in the way of competitors pursuing a strategy of wage dumping, runs contrary to the practice of fair competition.

“Deutsche Post will continue to ensure universal service throughout Germany,” said Zumwinkel. “What we have achieved with Exel represents the largest integration in our industry and, when considered together with BHW, the largest in our corporate history.”

Revenue is under pressure from competition in the domestic mail business but Deutsche Post said it was able to offset the expected decline in revenue in its home market through growth in its international business. Revenue grew by 3.2 per cent to 13.29 billion euros. EBIT grew slightly from 2.03 billion euros to 2.05 billion euros.

Over the coming year the company expects that the other business units will more than offset revenue losses in the domestic mail business. In logistics, it expects high single-digit sales growth for 2007.

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