Deutsche Post’s 4Q Profit Falls
Deutsche Post said Thursday its fourth-quarter profit plunged 61% on a writedown of its U.S. DHL Express unit, Bloomberg reported.
Net income fell to 255 million euros (about $390 million), or 21 cents a share, from 649 million euros ($995 million), or 54 cents, a year earlier, DHL said in a statement. Sales rose 3.9% to 17 billion euros ($26 billion).
Chief Executive Officer Frank Appel, who took over last month after Klaus Zumwinkel resigned in a tax-evasion probe, is faced with turning around the U.S. express-delivery unit, Bloomberg said. (Click here for previous coverage.)
In January, Deutsche Post said it would take about a 600 million euros ($874 million) writedown on the U.S. DHL unit.
U.S. operations are an integral part of Deutsche Post's global business and the company has narrowed its options for the division, Appel said in a press conference, Bloomberg reported.
DHL is the fourth-largest U.S. package shipper, with about 6.6% of the market, according to data compiled by SJ Consulting Group, Bloomberg reported. UPS Inc. is the largest with 52%, FedEx Corp. has 29% and the U.S. Postal Service has 12%.
DHL Americas is ranked No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
