DHL 1999 Annual Report Download - page 30

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We intensified our cooperation with DHL, in which we
hold a 25.001 percent stake, and improved access to the
world’s largest express mail service network which
reaches 227 countries around the globe. Today, express
mail items received at our retail outlets are fed directly
into the DHL network.
Looking at the Euro Express Europe business segment,
we are in the process of integrating our new acquisitions
and standardizing our product range.As part of Deut-
sche Post World Net,our subsidiaries are working under
the banner of the Euro Express brand in 18 countries
throughout Europe.By interlinking local strengths into a
Europe-wide network, we have built an outstanding plat-
form for offering efficient, high-quality solutions in the
fast-growing cross-border B2B parcel distribution area.
As in the parcel and express mail field, partnerships and
a foreign presence are becoming increasingly important
in the letter mail area as well. For this reason, we have
expanded our internationalization activities to include
letter mail and have located them in the EXPRESS
corporate division which is already well established at
an international level.
Our International Mail and Global Mail business units
were able to grow both their revenue and sales volumes
substantially during the year. Having joined forces, our
U.S. subsidiaries Global Mail and YellowStone guarantee
letter mail volumes from foreign business customers and,
in the process,strengthen our sales presence in the attract-
ive U.S. market. We want to continue expanding in the
fast-growing international mail and press distribution
area.With this objective in mind, we acquired the British
letter mail service provider Herald International Mail-
ings in March 2000. Following these moves, we are fully
prepared to meet the pending liberalization of the letter
mail area and the ensuing competition in other countries.
LOGISTICS
The LOGISTICS corporate division was set up in 1999
on the basis of several acquisitions. We identified the
Swiss logistics conglomerate Danzas as the ideal partner
for entering this segment.All other acquisitions in this
corporate division were undertaken to expand Danzas’s
regional range or product lineup. Today, we can offer
customers one-stop-shopping with a complete range of
services for the entire logistics chain.Danzas offers con-
ventional global air and sea freight services, European
surface transport services and, first and foremost,
customized logistics solutions for every need.
Our acquisitions of ASG and Nedlloyd European Trans-
port and Distribution constitute the ideal complement
to the Danzas service portfolio.The Nedlloyd division is
particularly strong in Benelux and Germany.ASG closes
our geographic gap in Scandinavia and, in the process,
completes our powerful network in Europe.
The integration of Nedlloyd Unitrans, Nedlloyd NTO,
van Gend & Loos and Gerlach has also added special
logistics solutions, which in some cases are tailored for
specific industries, to our range of products and services.
Following our acquisition ofAEI,which became part of
Danzas Intercontinental in February 2000, we have
taken a very strong position in the global air freight
business. Further,AEI also excels in value-added serv-
ices, with fast growth in various areas such as customs
clearance and warehousing.
Despite high acquisition and integration costs, the
LOGISTICS corporate division generated an operating
profit (EBIT) before amortization of goodwill of
EUR 49.7 million in its first business year. Net revenue
totaled EUR 4.2 billion, putting us in the leading
ranks.Although the year got off to a slow start for the
Management Report