LOGISTICS, EXPRESS FAIL TO STOP FALL IN DEUTSCHE POST’S OPERATING PROFIT FOR 2002

LOGISTICS, EXPRESS FAIL TO STOP FALL IN DEUTSCHE POST’S OPERATING PROFIT FOR 2002    Deutsche Post World Net, the German postal service and logistics group, confirmed that its group profit from operations before amortization declined by 4.9 percent in 2002, to 2.4 billion euros ($2.5 billion), but it said that its logistics and express activities improved their results.
   The profit from operations from the group’s large and highly-profitable mail business fell by 15 percent in 2002, to 1.7 billion euros ($1.8 billion).
   By contrast, the express division of the group produced an increase of 38 percent in profit from operations, to 243 million euros ($253 million), and logistics activities saw profits rise by 41 percent last year, to 224 million euros ($233 million). Financial services activities boosted their profits by 19 percent, to 621 million euros ($649 million).
   Deutsche Post’s total revenues increased by 18 percent last year, to 39.3 billion euro ($40.9 billion).
   The mail division of the group had revenues of 11.7 billion euros ($12.2 billion) in 2002, marginally less than in the previous year. In the express division, revenue increased by 95 percent, to 12.5 billion euros ($13 billion) following the consolidation of the now wholly-owned integrator DHL. Deutsche Post’s logistics activities, including those of Danzas, increased their revenues last year by 41 percent, to 9.2 billion euros ($9.6 billion).
   The German group generated 41 percent of its total revenues outside Germany in 2002, as compared to 33 percent in the prior year.
   As previously reported, Deutsche Post’s net profit fell by 58 percent to 660 million euros ($690 million) last year, largely because of an extraordinary charge of 907 million euros ($940 million) on the repayment of state subsidies ordered by European authorities.
   At a press conference on Tuesday in Bonn, Klaus Zumwinkel, chairman of Deutsche Post, said that the group would propose an 8-percent increase in its dividend to 40 euro cents (42 U.S. cents) per share.
   Zumwinkel reported that the group had a good start to the current year, with the first two months achieving higher earnings over the prior-year period.
   The German group continues the implementation of a group-wide restructuring program, Star, to achieve a 1.4-billion-euro ($1.5-billion) increase in earnings.
   Deutsche Post re-iterated its goal to become the world’s largest logistics group.
   This year, Deutsche Post will bring all DHL, express, and logistics activities under the brand name DHL.