But it is also conversely the less profitable

With these 18,273 billion euros in sales in 2005, DHL Express is the activity (alongside mail, logistics and financial services) that weighs heaviest in Deutsche Post World Net (DPWN). But it is also, conversely, the less profitable. The 30 acquisitions in recent years certainly helped division today have the most dense network with a truly international presence, including in countries such as the Iraq, the Afghanistan or the Korea of North. But the difficulties of integration still weigh on the margin.

New single CEO in the industry, which had two so far (one for Europe and one for the rest of the world), John Mullen said that "two to three years of consolidation are still necessary." "It must generate margins and results that justify the investment," he says in "echoes". The objective is to achieve a margin of 10 outside the United States in two years. In Asia, where DHL is by far the leader with a market share of 30 to 60 depending on the country, this threshold is largely met. In Europe, where the Group has the widest network and carries out almost 60 of its turnover, it is still less to this objective, penalized by the difficult integration of recently acquired companies. But it is "not so far". Achieve 10 profitability, "to streamline, eliminate duplicates and make profitable growth", said John Mullen. The opening of the "hub" of Leipzig, in Germany, under one year to replace that of Brussels, should help, as well as the decision taken recently to attach to the Logistics division rather than the express road Charter activity, whose performance is structurally less.

At the same time, the Group intends to straighten its activities in the United States. Financially, the entry in this market, with the purchase of Airborne, will cost more expensive DHL Express and lasted longer than expected, but investment is deemed necessary. "It is not possible to issue a strong international service without being in the United States." "56 of our larger customers are American," warrant officer.

The balance in two years

Today, DHL is able to offer a level of service equivalent to its two major competitors, as to reveal a study of PA Consulting. But with a market share of only 9 compared to the 80 share the two integrators must still "invest and improve its performance." "The objective is to achieve balance in two years," says John Mullen. The reduction of losses will be for 50 of better management and 50 of the increase in the volume and economies of scale. "To ensure air capacity, DHL Express which cannot, for legal reasons, have its own airline in the United States, has acquired 49 of Polar, number one for the rental of aircraft in the United States. For now, DHL continues to work with Northwest Airlines, with whom he signed a contract valid still for two years. Then, the network of Polar will be amended to be adapted to the needs of DHL, especially for trips between the United States and Asia. The relief of DHL in the United States and Europe is not to remember John Mullen that the future lies elsewhere. "We are already less investing in mature countries and more in developing countries," he says.