Deutsche Post profit drops on weak freight unit

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Deutsche Post DHL, the postal and logistics group, said it would review the restructuring process at its freight division after reporting a lower-than-expected first-quarter operating profit.

The company reported earnings before interest and tax of 720 million euros ($805 million), against forecasts for 751 million euros, according to the average analyst forecast in a Reuters poll.

"We saw a moderate start to the year, as we expected," Chief Executive Frank Appel said in a statement on Tuesday.

Restructuring at its freight forwarding business has been more costly and difficult than anticipated, resulting in Deutsche Post scrapping its original 2015 profit target last year.

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The executive board member responsible for the division, Roger Crook, stepped down last month, handing his responsibilities to Appel.

In the first quarter, the division reported operating profit of 17 million euros, down 65 percent from the year-earlier period.

Deutsche Post said the new management of the division would look at results from those countries where restructuring measures had already been carried out.

"Based on this review, the future implementation approach will be defined," the company said.

Deutsche Post confirmed its target to reach group operating profit of between 3.05 billion and 3.2 billion euros this year.

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