Ad-hoc | 6 May 2009 06:57
Deutsche Post AG / Quarter Results
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.
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Deutsche Post DHL first-quarter earnings, revenue decline - cost reductions
to be accelerated
As a result of the global economic crisis, Deutsche Post DHL, the world's
largest provider of logistics services, recorded a 12.9 percent drop in
revenue to 11.5 billion euros in the first quarter of 2009. Underlying EBIT
fell by 42.1 percent to 312 million euros. The decrease was primarily
caused by the unprecedented plunge in demand across all regions and sectors
as well as reduced volumes and higher wages in the MAIL Corporate Division.
Reported EBIT on Group level totaled 27 million euros compared with 539
million euros in the previous year mainly because of non-recurring charges
tied to the restructuring the Group's DHL Express business in the U.S.
Challenges being tackled
The global economic crisis has uncovered weak spots in the company, which
will be tackled systematically over the coming weeks and months. To that
end, the Corporate Division EXPRESS is planning a wide-ranging
reorganization to create a leaner and more streamlined business by
eliminating layers within the organization while leveraging synergies on
the global and regional levels. The current five geographical regions will
be combined to form three. This will be complemented by a new governance
model with a six-member Global Management Board. One of the first things
the new team will be looking at is finding solutions for loss-making
domestic businesses and sharpening the focus on the Group's profitable
international Express business and on further cost reductions.
In addition to that the Group plans to further raise efficiency at its
Corporate Division MAIL to make the business fit for the future in light of
declining volumes. In order to do so, Deutsche Post DHL plans to make
structural adjustments in addition to further cost cuts. The Group plans to
discuss topics such as an extension of the weekly working hours, or a
postponement of planned salary increases with the social partners. On an
operating level, the Group plans to further boost productivity. Mail that
is currently being shipped by air will in the future be shipped in a more
environmentally friendly and less costly manner by ground transportation,
without compromising on quality. Together, all measures are expected to
underpin EBIT at the MAIL division by around 300 million euros this year.
Outlook
Following the significant drop in volumes around the Group in the first
quarter 2009, Deutsche Post DHL may now be reaching the bottom in terms of
volume declines. If this were the case, the Group would expect to see
increasing benefit in the second half of the year and in 2010 from its
cost-cutting program. In November, Deutsche Post DHL set a target of
cutting at least 1 billion euros in non-operating costs by the end of 2010.
The EXPRESS Corporate Division, which contributes the lion's share with 460
million euros to the program, expects to reach its target by the end of
2009 already. The other corporate divisions - MAIL with 180 million euros,
GLOBAL FORWARDING, FREIGHT with 160 million euros, SUPPLY CHAIN with 130
million euros and Corporate Center with 70 million euros - will also strive
to reach their cost-cutting targets earlier than planned.
In particular in the EXPRESS Corporate Division, the good progress in the
restructuring of the DHL U.S. Express business will support the improvement
in the second half of the year. This should lead to underlying group EBIT
showing significantly lower reductions relative to 2008 than the Group has
seen in the first quarter and expects to see in the second quarter of the
year.
The positive effects as a result of the Postbank transaction should lead to
a return to a positive net profit in 2009 as a whole - a substantial
improvement on 2008.
The entire interim report on the first quarter 2009 is available as per May
6, 2009, 0700h CET under http://investorrelations.dp-dhl.com
Contact:
Martin Ziegenbalg
EVP Investor Relations
Tel: 0228-182-63000
06.05.2009 Financial News transmitted by DGAP
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Language: English
Issuer: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Deutschland
Phone: +49 (0)228 182 - 63 100
Fax: +49 (0)228 182 - 63 199
E-mail: ir@deutschepost.de
Internet: www.dpwn.de
ISIN: DE0005552004
WKN: 555200
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Hamburg, München, Stuttgart;
Terminbörse EUREX
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