Express, logistics salvage Deutsche Post’s operating profits

Express, logistics salvage Deutsche Post’s operating profits    Big increases in operating profit from express and logistics activities allowed Deutsche Post World Net to maintain its group operating profit at 3 billion euros ($3.8 billion) in 2003, despite worsening results from its mail and financial divisions.
   The German group’s express division's profit from operating activities increased 51 percent in 2003 to 408 million euros ($510 million). “Positive developments in Europe, the strongest region in terms of revenue, and price and productivity gains in Germany helped boost earnings in the division,” Deutsche Post said.
   In the logistics division, operating profit rose 19 percent to 206 million euros ($258 million) last year.
   Both the express and logistics divisions reported increases in sales for the year, with express generating revenue up 12 percent to 16.4 billion euros ($20.5 billion), and logistics revenue up 1 percent to 5.9 billion euros ($7.4 billion). The German group said the rise in revenue in express services was mainly attributable to acquisitions, above all that of Airborne in the United States.
   Deutsche Post’s group revenue increased 2 percent last year to 40 billion euros ($50 billion), a company record. Group consolidated net profit, which in 2002 was held back by European Commission competition fines, doubled in 2003 to 1.3 billion euros ($1.6 billion).
   At the group's earnings press conference today in Bonn, Klaus Zumwinkel, chairman of Deutsche Post, said he will propose a 10-percent increase in dividend for the year.
   “We have achieved our targets despite the challenging state of the global economy and are well on track to become the number one logistics provider with the resources we already have,” he said.
   “We want to continue growing in 2004, pushing ahead with the successful integration in the express and logistics divisions and seizing opportunities in markets across the globe, especially in the U.S. and Asia,” Zumwinkel added.