DHL 2003 Annual Report Download - page 95
Download and view the complete annual report
Please find page 95 of the 2003 DHL annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.91
Events after the Close of the Fiscal Year/Outlook
The entire euro zone should also feel the effects of the global recovery in 2004.
The rise in the euro will probably continue to put a damper on exports. However,
increasing global demand indicates that they will perform substantially better overall
than in the previous year. Experts forecast a 4.5% rise in exports in the euro zone,
while Germany should do somewhat better with at least 5%. This assumes, however,
that the euro does not undergo another massive hike. Early indicators point to a more
upbeat mood among private consumers in the euro zone. In the current fiscal year,
GDP growth here is expected to total 2%, and the figure for Germany should be only
slightly lower.
Overall, world trade is predicted to increase by around 8% in 2004.
The recovery in the global economy will create a positive environment for equity
markets. However, they already priced in much of the recovery in 2003, so overall
share price increases in 2004 will probably be lower than in the previous year. The US
Federal Reserve is likely to raise its key interest rates again slightly in the course of
the year, so capital market rates may well increase further as the recovery progresses.
As the risk of inflation remains low, however, a sharp increase is not expected.
In addition to ongoing geopolitical tension, exchange rate developments pose a
certain risk to the world economy. If the US current account deficit deepens, a further
substantial depreciation of the dollar cannot be ruled out. This would impact the
euro, which is currently slightly overvalued, according to expert estimates. Pressure
would also grow on Asian countries to revalue their currencies. These circumstances
would only allow the upturn to continue if exchange rate adjustments run smoothly
and do not lead to serious shifts in international competitiveness.
Seizing opportunities on our markets
We expect the deregulation of the mail markets in Europe to continue apace this year,
and will strategically exploit the opportunities this offers us. Demand for customized
system solutions will also increase. From our perspective, the growing volume of
international trade represents an excellent opportunity to further increase our inter-
national mail business.
As a result of the growing importance of , customers
in the courier, express, and parcel service markets in Europe are increasingly de-
manding time-definite products (i.e. express deliveries that arrive at a precise time).
We will tailor our product offering to this trend.
just-in-time-production
Management Report
Just-in-time-production: the timing
of production is closely linked to
customer demand, which means
that storage space can be reduced
to a minimum or eliminated
altogether.