DHL 1998 Annual Report Download - page 20

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Deutsche Post’s acquisitions and advance payments to DPPS in particular
had the effect of reducing liquid assets by DM 821 million. The equity ratio
fell from 27.4 per cent in 1997 to 21.9 per cent on 31 December 1998 due to
the balance sheet extension and the fact that goodwill was offset against
the capital reserve in 1998.
Staff level adjustments continue according to plan
As of 31 December 1998, the group had a total of 260,520 employees
(including trainees) on its payroll, 3.8 per cent fewer than one year before.
Necessary staff cuts could be effected on the basis of socially acceptable
arrangements. Collective agreements exist with labor that allow us to adjust
our personnel factor costs in order to remain competitive in the face of the
changing market situation. The latest collective wage agreement finalized
in March 1999 stipulates a 3.1-per cent increase in wages and salaries as of
April 1999. This agreement runs until 31 March 2000.
Investment volume remains high
At DM 1,308 million, investment in property, plant and equipment was
sizable once again in 1998. This amount was however less than in 1997
because major investment programs for setting up letter and freight mail
centers have since been brought to a close. Deutsche Post’s investment
activities focused in particular on the information technology field and on
the development of international networks. Massive investments are to be
made in these areas in the years ahead as well. The stakes we have acquired
in other companies were financed largely through the release of non-current
assets that are not essential to operations.
16
Group Management Report