Deutsche Post DHL to improve its operating cash flow

Favourable capital-market conditions motivate Deutsche Post DHL to borrow funds up to EUR 2 billion
 
Deutsche Post DHL, the world’s leading mail and logistics group, is taking advantage of the favourable capital-market conditions to obtain long-term funding for a further portion of its pension obligations. The Group plans to use an array of financing instruments to secure funds up to EUR 2.0 billion in total for this purpose.
 
The capital raised will be used to almost double the plan assets available for the pensions paid to German employees. The company expects this step to improve its operating cash flow in coming years because a larger share of pension payments can be made from plan assets as well as from the returns generated by the investment of these funds. Furthermore, the group expects to see a small positive effect on the financial result and its net income.
 
“This step makes sense in several ways: We expect a positive effect on our earnings and an improvement in our cash flow,” said Larry Rosen, the CFO of Deutsche Post DHL. “At the same time, our employees benefit from the additional security of knowing that the financing of their pensions has been separated from the company’s business performance.”

Quelle: LogEastics

Portal: www.logistik-express.com