Deutsche Post AG

Earnings Release • Jul 10, 2002

News Details

Ad-hoc | 10 July 2002 08:04

Deutsche Post AG english

Price regulation leads to lower earnings for DPWN totalling EUR 1,5 bn Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Intended decision concerning price regulation leads to lower earnings for DPWN until 2007 to the total amount of EUR 1,5 bn The Regulatory Authority for Telecommunications and Posts (RegTP) has announced the intended decision for the price regulation of the mail sector. The planned price reductions for 2003 will lead ceteris paribus to lower revenues and hence earnings of around EUR 300 mio. For the period 2004 to 2007 price increases are at maximum possible in line with a positive delta between the inflation rate and productivity growth, the latter detemined by the RegTP to be 1,8%. If the inflation rate is below 1,8% then further price reductions are required. If the inflation rate is above 1,8%, price increases are possible. For these calculations the inflation rate of the pre-previous year (t-2) is being used. DPWN calculates with lower revenues and earnings totalling around EUR 1,5 bn for the entire time span from 2003 to 2007 should the decision of the RegTP be implemented as envisaged. DPWN will make every effort to lower its operational expenses in order to safeguard its future prospects. Actions taken may involve price increases for certain products, closure of post offices and a reduction of the DPAG workforce by around 10,000 employees. end of ad-hoc-announcement (c)DGAP 10.07.2002 ——————————————————————————– WKN: 555 200; ISIN: DE0005552004; Index: DAX Listed: Amtlicher Markt in Frankfurt, Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart; EUREX 100804 Jul 02