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Deutsche Post sells long-distance bus unit, confirms 2016 targets

German postal and logistics company Deutsche Post said it was selling its long-distance bus unit to market leader Flixbus due to tough competition after it reported second quarter results on Wednesday.

"In terms of profitability, Postbus did not sufficiently live up to our expectations," executive Joachim Wessels said in a statement.

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Germany liberalized the long-distance bus market in 2013, prompting a flood of entrants onto the market, but also quickly leading to price competition, insolvencies and consolidation.

Flixbus merged with MeinFernbus just over 18 months ago. Deutsche Post said it and Flixbus had agreed not to disclose the price paid for Postbus.

Deutsche Post said second quarter earnings before interest and tax (EBIT) rose 40 percent to 752 million euros ($843 million), exceeding the average forecast for 725 million in a Reuters poll.

It maintained its 2016 target for EBIT of between 3.4 and 3.7 billion euros this year.