• GAO, AAR at Odds on Security
• Dasburg, DHL cut deal
• Air Cargo Bills Advance in House, Senate
• Mineta Unveils $247 billion SAFETEA Bill
• Trade Corridors Need $2 billion a Year
• Deutsche Post Profits Up $100 Million

Deutsche Post Profits Up $100 Million

Reprint permission

German postal giant Deutsche Post World Net reported 5 percent growth in the first quarter, with profit rising to $1.1 billion from $1 billion a year earlier. The company said the results exceeded expectations and credited growth in the express corporate division for much of the success.

"The fact that Deutsche Post World Net was actually able to exceed expectations in the first quarter of this year is testimony to the strength of our group and the success of our integration activities," Deutsche Post Board Chairman Klaus Zumwinkel said. "Revenue and profit both are up on last year, and our group-wide STAR program is achieving impressive, sustainable successes. In the light of our strong figures and our successful STAR program, we are more convinced than ever that we will be able to become the global leader in logistics."

The company reported revenue of $11.1 billion, .7 percent growth from $11 billion.

The Express unit's financial reporting structure changed this year, and the company's global courier, express and parcel activities are now reported under the DHL brand. Revenue for the division rose 3.4 percent year-over-year to $4.5 billion from $4.3 billion. Profit from the unit's operating activities skyrocketed 88.4 percent year-over-year to $91.9 million from $48.8 million. Deutsche Post reported the Europe region performed especially well for the division but that other regions contributed to the growth too.

The Logistics unit now includes air and ocean freight activities, after having the Eurocargo Business Unit transfer to the Express unit. Revenue for the unit rose 2.8 percent year-over-year, to $1.6 billion from $1.5 billion. Profit for the unit rose 46.4 percent to $46.5 million from $31.8 million.

Despite the negative economic outlook for the rest of 2003, Deutsche Post hopes to turn a profit from its operating activities of at least $3.2 billion. That would be a slightly lower profit than the company reported in 2002, when it made $3.4 billion.

Want to use this article? Click here for options! Copyright 2003 Commonwealth Business Media