Deutsche Post World Net has published detailed figures for 2006, having only announced a short summary of its results last month. The headline numbers were satisfactory, with Earnings Before Interest and Tax (EBIT) up 2.9% at €3.87bn and revenue growing 35% to €60.5bn after acquisitions.

·Revenue rises 36% to 60 billion euros, EBIT at 3.9 billion euros
·Dividend increase to 75 cents planned
·Largest integration in the Group’s history successfully mastered
·Group Chairman and CEO Zumwinkel demands fair liberalization

Looking back at a fiscal year that drew to a positive close, Deutsche Post World Net proposed a dividend increase to 75 cents at the company’s annual press conference in Bonn. For 2007, the Group forecast a slight rise in revenue and EBIT excluding extraordinary effects. “Our good operating performance in 2006 - particularly in the fourth quarter - shows that our strategy of internationalization is bearing fruit,” said the Group’s Chairman and Chief Executive Officer Klaus Zumwinkel. “We already generate some 60 percent of our revenues abroad and more than half of our operating profit with services outside the MAIL division.”

The integration of the British logistics group Exel, with its 110,000 employees, proceeded smoothly in the year under review and BHW could be integrated earlier than planned. Zumwinkel: “What we have achieved with Exel represents the largest integration in our industry and, when considered together with BHW, the largest in our corporate history. This was all managed most successfully - a fact clearly reflected in the numbers.” With the acquisition of Williams Lea, the Group also expanded the value-added services offered by the MAIL Division. Overall, the Group today works from a solid base for profitable organic growth, a base that is unique in the industry. This platform will be further reinforced by the “First Choice” corporate initiative, rolled out at the beginning of 2007. “First Choice” will comprise more than 5,000 projects Group-wide over the next two years; these should decisively contribute to meeting the targets set for 2009.

In order to secure jobs in Germany in the future, further steps toward the liberalization of the mail market must be taken reasonably and with a sense of responsibility. “We are concerned about the political framework for the full opening of Germany’s mail market,” said Zumwinkel. The current situation, where there is no agreement on a harmonized liberalization throughout Europe and where nothing stands in the way of competitors pursuing a strategy of wage dumping, runs contrary to the practice of fair competition. “Deutsche Post will continue to ensure universal service throughout Germany,” Zumwinkel promised.

Financial key figures
In fiscal 2006, operating profit (EBIT) rose by 2.9 percent, from 3.76 billion euros to 3.87 billion euros, including the one-time gains communicated. Consolidated revenue grew by 35.8 percent to 60.55 billion euros. Consolidated net profit declined by 14.3 percent to 1.92 billion euros, primarily attributable to Deutsche Post World Net cutting back its Postbank holding in the past fiscal year to 50 percent plus one share. Earnings per share fell by 19.6 percent to 1.60 euros.

MAIL Division
In the MAIL Division, the Group was able to more than offset the expected decline in revenue in its home market through growth at its international business. Following an encouragingly strong fourth quarter, revenue grew by 3.2 percent to 13.29 billion euros. EBIT grew slightly from 2.03 billion euros to 2.05 billion euros, facilitated in part by successful cost management.

EXPRESS Division
The EXPRESS Division increased its revenue by 2.2 percent to 17.2 billion euros. After initiating the turnaround in the U.S. in the second half, EXPRESS generated EBIT of 325 million euros in the year under review. In 2005, the division booked losses of 23 million euros.

LOGISTICS Division
Members of the Board of Management Deutsche Post World Net (from left to right): Frank Appel, John Mullen, Walter Scheurle, Wulf von Schimmelmann, Klaus Zumwinkel, Hans-Dieter Petram, Edgar Ernst and John Allan.

LOGISTICS was able to increase its revenue even more than expected in the year under review. Revenue more than doubled to 22.74 billion euros, a figure all three business units contributed to with sustained organic growth. Acquisition effects came to 11.64 billion euros, of which the largest share was from the purchase of Exel. EBIT advanced to 762 million euros from 346 million euros.

FINANCIAL SERVICES Division
The EBIT at the FINANCIAL SERVICES Division, stemming largely from Postbank, rose in the course of 2006 from 863 million euros to 1 billion euros for the first time.

Source: DPWN

The Glossary of Terms in Logistics & Shipping is the most comprehensive paper-based dictionary and therefore the standard for defining terms used in the area of Logistics and Shipping. Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com

paperback student version $ 19,99 hardcover executive version $ 29,99

| Permanent Link | Print This eLog |

(Visited over 19799 times)