An internal reorganization designed to improve customer service includes a two-tier structure of German domestic mail service and international logistics, a new overarching executive committee, simplified planning processes, and an incentive system for employees.
The name of the holding company will remain Deutsche Post AG.
The mid-term strategy aims for all divisions to achieve annual internal growth of 1 percent to 2 percent above the market average and rank in the top quarter of their peer groups regarding profitability, cash conversion and return on capital.
Deutsche Post DHL is taking a short-term defensive strategy under current economic conditions to preserve cash and cutting costs, including a reduction of 1 billion euros ($1.25 billion) of non-operating costs by the end of 2010.
The moves come in the wake of Deutsche Post's two-year profit improvement program, 'Roadmap to Value,' launched in November 2007. Officials intended to increase profits 1 billion euros by the end of 2009, but now say the effort needs to be augmented to meet expectations.
Last year, the company abandoned its effort to operate a ground package delivery in the domestic U.S. market and focus only on international business to and from and the United States after billions of dollars in losses.
On Wednesday, DHL announced that Lawrence A. Rosen would succeed John Allan, 60, as chief financial officer. Allan, who led U.K.-based Exel through its merger with DHL in 2005, will retire at the end of June. Rosen, 51, is CFO at Fresenius Medical Care AG, a German maker of dialysis devices.
John Mullen resigned in February from the Deutsche Post supervisory board where he managed the DHL Express division. He was replaced by Ken Allen, who was in charge of DHL Express USA. ' Eric Kulisch
