Deutsche Post Completes Exel Deal; Lifts Forecast
eutsche Post World Net, Europe’s biggest postal service, raised its 2005 earnings forecast after completing the $6.6 billion purchase of Exel PLC Wednesday, Bloomberg reported.
DP now expects its operating profit to reach about $4.4 billion, excluding contributions from third-party logistics provider Exel, compared with a previous goal of at least $4.3 billion, the German corporation said in a statement to the Frankfurt stock exchange, Bloomberg said.
The purchase will generate savings of $263 million a year by 2008 and will save DHL about $85 million a year in health-care costs, Bloomberg reported.
DHL Americas is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, and Exel Americas is No. 1 on the TT Logistics 50 listing of the largest U.S. and Canadian logistics firms.