Deutsche Post AG

Earnings Release • May 14, 2004

News Details

Corporate | 14 May 2004 07:56

Deutsche Post World Net: Start in 2004 Better Than Expected – Part 2 of 2

Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Deutsche Post World Net: Start in 2004 Better Than Expected Part 2 of 2 Corporate Division LOGISTICS The LOGISTICS Corporate Division grew strongly in the first quarter. Revenues increased 10.8 percent to 1.5 billion euros whereas EBITA rose 43.9 percent to 59 million euros. Revenue growth in the DHL Danzas Air & Ocean unit was substantial and helped compensate for negative currency effects, which amounted to 44 million euros for the entire Corporate Division LOGISTICS. FINANCIAL SERVICES Corporate Division The FINANCIAL SERVICES Corporate Division, which includes Deutsche Postbank AG, the retail outlet network as well as the Pension Service, generated first- quarter revenues of 1.8 billion euros, a 9.7 percent decline compared with the first quarter a year ago. The overall low interest-rate level reduced Postbank’s interest income in the quarter. This was also the reason behind the drop in Postbank’s interest expenses. Operating profit in the division rose by 37.9 percent to 160 million euros in the first quarter from 116 million euros a year ago. Postbank reported an after- tax return on equity of 7.4 percent in the first quarter, from 4.9 percent a year ago. The cost-to-income ratio fell by 6.3 percentage points to 70.6 percent as personnel costs declined. Outlook In the course of the year, Deutsche Post World Net expects the pace of global economy recovery to quicken. In the U.S., the outlook for sustainable economic recovery is particularly good. Early economic indicators for the eurozone also point to continued recovery, albeit in a somewhat less dynamic fashion. The largest expansion of the European Union to date on May 1, 2004 will not result in any significant economic changes in the short term. In Germany, economic experts are expecting a rather slow economic recovery for the rest of the year. “Deutsche Post World Net expects operating earnings (EBITA) to increase by 5 to 10 percent this year and to reach at least 3.6 billion euros in 2005. That means we’re sticking to the forecast we gave when first communicating the STAR program, which is a positive message to our shareholders”, Ernst said. In the MAIL Corporate Division, the company is forecasting full-year 2004 EBITA to remain at the prior-year level. Deutsche Post World Net expects the EXPRESS Corporate Division to continue to develop positively in the course of the year and to record an EBITA increase of at least 20 percent compared with reported 2003 figures. The company continues its positive assessment for the LOGISTICS Corporate Division, where it expects EBITA to increase by at least 10 percent this year. In the FINANCIAL SERVICES Corporate Division, Deutsche Post World Net is forecasting an EBITA increase of at least 15 percent for 2004. These forecasts relate to the result presented in the annual report for 2003. Notes to editor: To download the entire quarterly report, please see http://www.deutschepost.de. The report will be available as of 8 a.m. CET on May 14, 2004. For further information, please contact: Deutsche Post World Net Media Relations + 49 228-182-9988 pressestelle@deutschepost.de About Deutsche Post World Net: Deutsche Post World Net is one of the largest high-performing logistics providers in the world. With its brands Deutsche Post, DHL and Postbank, the Group offers its customers a global mail, express and logistics service as well as a wide range of financial services. The company is thus excellently positioned on the way to becoming the global number one in the express and logistics sector. Approximately 380,000 employees generated worldwide revenues of more than EUR 40 bn in 2003. Deutsche Post World Net is listed on the Frankfurt stock exchange and is a member of the DAX 30 index. Approximately 24.000 men and women will be employed in the Group’s US business units. For more information, visit www.dpwn.com. Forward-looking Statement: This document contains certain statements that are neither reported financial results nor other historical information. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward- looking statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Post AG’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this document. Deutsche Post does not undertake any obligation to publicly release any revisions to these forward- looking statements to reflect events or circumstances after the date of this document. end of message, (c)DGAP 14.05.2004 ——————————————————————————– WKN: 555200; ISIN: DE0005552004; Index: DAX Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX 140756 Mai 04