BONN, Germany (AFP) - Deutsche Post, the semi-privatised German postal authority, said it was shifting the break-even target for Express Americas, the US arm of its DHL express delivery unit, to 2006 instead of 2005 after deciding to invest more in the region.
"We will increase spending on improving our infrastructure, marketing and service quality in a move that will shift the break-even target for Express Americas to 2006 from 2005," Deutsche Post said in a statement.
"The additional expenditures underline our long-term commitment to the key US market," where Express Americas competes directly with market leaders Fedex and UPS.
As a result of the increased spending, Express Americas was now expected to run up a loss of 500 million euros (615 million dollars) in 2004, wider than the 300 million euros originally envisaged.
"And in 2005, a loss of as much as 300 million euros can also be expected," Deutsche Post said.