Deutsche Post Slashes ’08 Guidance; Cites U.S. Weakness

Germany’s Deutsche Post AG, parent of parcel carrier DHL Express, slashed its 2008 earnings guidance and withdrew its 2009 outlook, warning that worsening economic conditions, particularly in the United States, are cutting into its profits.

Deutsche Post said it now expects 2008 earnings before interest and taxation of about $3 billion, about 17% less than the previous earnings guidance and about 17% below EBIT for 2007.

“The main shortfall will be seen in the Express corporate division, which is being particularly impacted by deteriorating market conditions in the U.S.,” Deutsche Post said in a third-quarter earnings preview released Monday.

Deutsche Post added that “it has chosen to withdraw its previous guidance for the [2009] year of around 3.4 billion euros [about $4.2 billion] in underlying EBIT.” The company said that it still “expects to make profit progress in 2009.”

It said that third-quarter earnings before interest and taxation, net of non-recurring items, fell about 8% from about $605.3 million in the 2007 quarter. The company will issue its full earnings report Nov. 11.

DHL Americas ranks No. 3 on the Transport Topics 100 list of the largest U.S. and Canadian for-hire carriers.