DEUTSCHE POST EXPECTS MORE GROWTH, TOP LOGISTICS POSITION

DEUTSCHE POST EXPECTS MORE GROWTH, TOP LOGISTICS POSITION

   Deutsche Post World Net, the German postal service operator turned logistics giant, predicts that it will continue to grow internationally to become the world’s largest logistics group.

   In March, Deutsche Post reported group revenues of euro 32.7 billion ($30.7 billion) up 46 percent over 1999, and a net profit of euro 1.53 billion ($1.4 billion), up 48 percent.

   At a press conference about the financial results in Bonn on Wednesday, Deutsche Post chairman Klaus Zumwinkel said that the group has completed the first two phases of its strategy aimed at promoting Deutsche Post “to becoming the number one global player for logistics” over the next few years.

   “Our path is divided into three phases,” he said. “Phase one ran from 1990 through 1997 and involved our reorganization in Germany and our economic turnaround. Phase two covered the next three years. During this time we laid the foundation for Deutsche Post World Net by launching the globalization of our group and creating a comprehensive range of products with a number of value-added services for our customers.”

   “Now we have entered phase three and are focusing on leveraging our international group’s enormous potential,” he added.

   The integration of Swiss forwarder Danzas into the group has been completed, and the integration of ASG, of Sweden, and Nedlloyd European Transport and Distribution, of the Netherlands, is almost complete, Deutsche Post said. Concerning Air Express International, the American forwarder, 29 out of 37 countries have been integrated, the group commented.

   “By acquiring companies such as Air Express International in the U.S. or ASG in Sweden we were able to reinforce our leading position in the worldwide logistics market,” a spokesman said. Deutsche Post said it now has a new international business platform which will provide the basis for the group’s growth over the next few years.

   Last year, Danzas and other companies within Deutsche Post’s logistics division posted total revenues of euro 8.3 billion ($7.8 billion), up 86 percent on 1999.

   Commenting on logistics, Zumwinkel cited a recent study by HypoVereinsbank which predicts that the market for logistics services will grow by 15 percent a year until 2004. The Internet will be the driver for this growth, and the core task of logistics “is to channel real goods flows and to coordinate them with the virtual business transactions,” he said.

   “Over the next few years, we will be able to benefit enormously from the outsourcing megatrend,” Zumwinkel said.

   For the first quarter of this year, Deutsche Post expects a revenue increase thanks to acquisitions and organic growth in all four of its corporate divisions — mail, logistics, express and financial services.

   In the last three years, Deutsche Post has been the world’s largest purchaser of logistics companies, having spent billions of dollars on the takeovers of Danzas, Air Express International and others, and in acquiring a majority stake in DHL International.