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Deutsche Post positive on downturn

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Deutsche Post positive on downturn

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Europe’s biggest mail carrier, Deutsche Post DHL, says the downturn in the industry may have hit its lowest point. The annual shareholders’ meeting heard that the rate of decline in the volume of goods handled appears to have bottomed out, even though it fell again in the first quarter.

But selling Postbank helped boost net income in the first quarter to nearly a billion euros. The CEO of Deutsche Post DHL, Frank Appel, said: “Postbank is now in the new and strong hands of Deutsche Bank, a leading company in our country and the world. That means Postbank’s future is safe.” The mail operator struck a deal in January to sell Postbank – Germany’s biggest consumer lender in terms of clients. The agreement includes options to sell shares to Deutsche Bank at nearly double today’s value. But with consumers and businesses reining in their spending, the delivery industry has been hit hard. Deutsche Post DHL recently shut down its domestic express operation in the United States, after failing to gain ground on UPS and FedEx.