Deutsche Post AG

Earnings Release • Jan 19, 2009

News Details

Corporate | 19 January 2009 07:30

Deutsche Post AG: Deutsche Post World Net provides preview of full-year 2009

Deutsche Post AG / Preliminary Results

Release of a Corporate News, transmitted by DGAP – a company of EquityStory

AG.

The issuer / publisher is solely responsible for the content of this announcement.

———————————————————————-

Deutsche Post World Net provides preview of full-year 2009

• 2008 underlying EBIT just above targeted 2.4 billion euros

• Tight cost management mitigates softer trading volumes in

fourth quarter

• Strong cash position after successful asset disposals

• DHL U.S. Express restructuring proceeding as planned

Bonn, Jan. 19, 2009: Deutsche Post World Net, the world’s largest express

and logistics provider, today reported that it has met its 2008 profit

target, thanks to strict cost management and cash conservation. Full-year

underlying EBIT, or earnings before interest and tax excluding

non-recurring effects, amounted to just above the targeted

2.4 billion euros. ‘We have taken vigorous action to minimize costs and

conserve cash through our Roadmap to Value initiatives during the past

year,’ said Chief Financial Officer John Allan. ‘Those measures enabled us

to deliver on our profit expectations, despite the weakening economic

climate.’ Reported EBIT was significantly better than minus 1 billion

euros, including the already communicated non-recurring negative effects

tied to the restructuring of DHL U.S. Express, one-off charges in other

businesses as well as writedowns on goodwill and intangible assets within

the Corporate Division Supply Chain/Corporate Information Solutions. Those

negative effects were countered by the repayment from the German government

following successful EU state aid proceedings.

As expected, fourth-quarter trading volumes in most business units

continued to soften in a year-on-year comparison. In Air and Ocean Freight

volumes weakened, with a double-digit decline rate reflecting the slowing

of the global economies. Express volumes outside the U.S. turned negative

in the fourth quarter, with only the volumes in the region Eastern Europe,

Middle East and Africa (EEMEA) still showing a mid-single digit percentage

increase. In Germany mail volumes in the fourth quarter continued the

stable development experienced in the first three quarters of the year.

Fourth-quarter revenues in the Supply Chain / CIS division also developed

in line with the rate seen in the first nine months of the year.

Year-end net debt, helped by asset disposals including around 700 million

euros received from Lone Star in December, was approximately 2.4 billion

euros in comparison with 2.9 billion euros at the end of 2007. The cash

position stood at around 1.4 billion euros on Dec. 31, following the

successful disposal of assets. Since then, the cash position has further

improved with the receipt of 3.1 billion euros from Deutsche Bank for a

stake in Deutsche Postbank, part of the improved transaction structure

announced last week. Reported cash flow from operating activities improved

significantly to above 3 billion euros, supported by a marked improvement

in working capital. With 1.7 billion euros, capital expenditure (Capex) was

16 percent below the previous year’s level.

The restructuring of DHL U.S. Express with the aim of exiting domestic

express services is progressing according to plan. Domestic revenue is

eroding somewhat faster than we had anticipated, which has allowed the

Group to accelerate cost reductions. Deutsche Post World Net will be in a

position to give a more detailed update on the progress when reporting its

full-year 2008 accounts scheduled for Feb. 26, 2009.

Deutsche Post World Net doesn’t expect to be in a position to issue a

guidance for 2009 before the end of the first quarter. However, the Group

expects business conditions to continue to be tough in 2009 due to the

impact of the economic downturn on many of its customers. ‘Fortunately our

customer base is highly diversified in terms of both geography and

industrial sector,’ CFO Allan said. ‘We continue to focus on further cost

reduction and cash generation and believe that Deutsche Post World Net is

well placed to trade through any further downturn relatively well.’

Please note: All numbers are subject to audit.

 – Ends –

Contact for media queries:

Deutsche Post World Net

External Communications

Silje Skogstad

Nicole Mommsen

Tel.: 0228/182 99 44

E-mail: pressestelle@deutschepost.de

19.01.2009 Financial News transmitted by DGAP

———————————————————————-

Language: English

Issuer: Deutsche Post AG

          Charles-de-Gaulle-Straße 20

          53113 Bonn

          Deutschland

Phone: +49 (0)228 182 – 63 100

Fax: +49 (0)228 182 – 63 199

E-mail: ir@deutschepost.de

Internet: www.dpwn.de

ISIN: DE0005552004

WKN: 555200

Indices: DAX

Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),

          Hannover, Düsseldorf, Hamburg, München, Stuttgart;

          Terminbörse EUREX

End of News DGAP News-Service

—————————————————————————