DHL Americas’ Ernst Sees No Profit Until 2006

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he DHL Americas unit of Deutsche Post World Net won’t make a profit until the fourth quarter of 2006, partly because the company is unable to charge as much as its main competitors because of service issues, the parent company’s chief financial officer said.

“Operating losses for the company could reach as much as $653.6 million (500 million euros) in 2004 and that additional losses of $392.1 million (300 million euros) are expected in 2005 before finally turning a profit in the fourth quarter of 2006, said Edgar Ernst, speaking at a transportation conference in Naples, Fla.

The financial projections reflect a loss of some air shipments following the company’s acquisition of the ground assets of Airborne Inc. in 2003, as well as additional spending to set up a new ground distribution network that would compete with U.S.-based package and express carriers UPS and FedEx, Ernst said Feb. 17.

For the full story, see the Feb. 28 print edition of Transport Topics. Subscribe today.