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Deutsche Post World Net to Restructure U.S. Express Business with New Airlift Partner and Substantial Cost Savings Initiative.

Article Excerpt
* DHL Express U.S. to Work with UPS for North American Airlift

* Network Restructuring to Remove Excess Capacity in U.S. Express

* Continued Strong U.S. Presence with No Changes to Product Range or Service Commitment; Less Than 4 Percent of Shipments Affected

* Annualized Cost Savings in U.S. Express of About $1 Billion (640 Million Euros); Underlying EBIT to Improve by Around $800 Million in 2010 and Around $1 Billion in 2011

* EXPRESS Corporate Division 2008 Underlying EBIT now Seen at 400 Million Euros; Group EBIT Guidance Adjusted Slightly to 4.1 Billion Euros

BONN, Germany -- Deutsche Post World Net, the world's leading transport and logistics company, today announced a plan to restructure its DHL U.S. Express business by working with UPS for airlift capacity and reducing costs in its ground infrastructure. Under the plan, DHL and UPS have agreed to develop a contract whereby UPS will provide air uplift for DHL Express U.S. domestic and international shipments within North America. In addition, DHL will align its U.S. Express infrastructure to existing shipment volumes by redesigning its ground linehaul network to better match capacity with customer requirements. The impact on service levels will be minimal with less than 4 percent...

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