Deutsche Post reports Q3 loss of euro83 million

FRANKFURT - German mail and logistics company Deutsche Post AG, the owner of shipper DHL, said Thursday it lost euro83 million ($123 million) in the third quarter, the result of a steep fall in revenue during the downturn and the bankruptcy of German retailer Arcandor AG.

Deutsche Post, based in Bonn, said the loss compared with net income of euro879 million in the July-September period a year ago.

Revenue for the period fell 19 percent to euro11.2 billion from euro13.8 billion.

Deutsche Post said it booked a euro146 million charge related to the insolvency of Arcandor, one of Germany's biggest retailers.

The company, however, raised its outlook for the full year.

It said that as a result of the progress it and its express unit DHL have made in cost management and the evidence of some market recovery, it expects earnings before interest and taxes for 2009 to be around euro1.35 billion, better than the euro1.2 billion it previously forecast. It also said it expects to post a net income for 2009.

"Our third-quarter results and the new forecast are positive indications that we are on the right track," Larry Rosen, the company's chief financial officer said in the report.

"But we still have a long way to go to unlock our full potential."

Shares of Deutsche Post were down half a percent at euro11.72 in Frankfurt afternoon trading.

The company continued to be affected by the global downturn's pressure on prices and volumes.

Revenue at the mail division fell 4 percent in the third quarter to euro3.28 billion from euro3.4 billion a year ago.

The express division saw revenue fall 27 percent to euro2.5 billion from euro3.5 billion.

Global forwarding and freight saw its revenue decline more than 30 percent to euro3 billion from euro3.5 billion in the July-September period of 2008.

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