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Deutsche Post commits to DHL in the U.S. - 3/6/2008 7:41:00 AM - Purchasing
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Deutsche Post commits to DHL in the U.S.
Writedown on U.S. business doesn’t deter German parent company
By Dave Hannon -- Purchasing, 3/6/2008 7:41:00 AM
After Deutsche Post announced earlier this week it was splitting up its logistics unit, there was speculation that the German logistics giant might also reshape or even jettison its U.S.-based DHL Express unit.But in announcing its fourth-quarter and year-end financials today, Deutsche Post confirmed it is committed to DHL in the U.S. despite reporting a 61% drop in overall profit due in large part to a writedown on the U.S. business.According to news reports, newly appointed CEO Frank Appel said Deutsche Post won’t pull out of the U.S. market and will have a more solidified strategy for the U.S. in May. Bloomberg reports that at a press conference, Appel said the U.S. operations are an “integral part” of Deutsche Post's global business and the company has “narrowed down” options for DHL.But Deutsche Post did specify that “We have performance issues in our DHL Express business in the U.S. and will continue to have challenges this year” according to a Reuters report covering the company’s presentation.See also: Competition heats up in the Asian small-parcel market
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