Deutsche Post to launch online service in H1 2010

[TrueBlueTerrier]

http://www.reuters.com/article/hotStock ... 3920091123" onclick="window.open(this.href);return false;

HAMBURG, Nov 23 (Reuters) - Deutsche Post DHL plans to launch an online mail service in the first half of 2010 that will help halt sliding earnings at its letter mail business, its traditional cash cow.

"This is a new business area with competing models," Chief Executive Frank Appel said in remarks for release on Monday.

Deutsche Post's letter mail business has been suffering from shrinking volumes and earnings as letter mail was gradually replaced by e-mail and other forms of electronic communication. The company has also not raised postage prices in 12 years.

The division posted a 1.61 billion euro ($2.41 billion) operating profit in 2008, down from 1.97 billion a year earlier.

"By 2015 at the latest we expect a stable EBIT development. Ideally it will be sooner," the letter mail business's head Juergen Gerdes said.