The World Trade Organisation has forecast that trading volumes in 2009 will shrink year-on-year by 10%. In this demanding environment, proactive risk management is becoming ever more important. An integral part of Deutsche Post DHL’s controlling processes is a system we use to identify and measure opportunities and risks at an early stage. Our management team monitors this information closely and incorporates it into their decision-making process. Information on the fundamentals of our risk management system and the significant risks affecting our earnings, financial position, and assets and liabilities are found in the 2008 Annual Report beginning on page 85.
The logistics market has deteriorated overall as a result of the economic crisis. The poor performance of some companies has impacted demand for our services and, in turn, our revenue. We are meeting these economic challenges with stringent savings initiatives and increased efficiency. We aim to deliver acceptable economic results amidst the current climate and optimise our processes with an eye towards customer satisfaction.
Arcandor AG and several of its subsidiaries filed to open insolvency proceedings in June 2009. Arcandor owns the Karstadt chain of department stores and the mail-order company Quelle and is one of our key customers. Depending on how the insolvency proceedings and Arcandor’s economic situation progress, there is potential for our MAIL and SUPPLY CHAIN divisions to experience losses in revenue and earnings as well as impairment losses. Up to 4,000 Group employees may be affected if restructuring measures become necessary. This impacted earnings by €40 million in the second quarter of this year.
In addition to the risks outlined above, in the first half of 2009, no further significant risks arose apart from those described in the 2008 Annual Report and the first interim report of this year. Despite the extraordinary challenges of this economic crisis, there are currently no identifiable risks which cast a doubt on the company’s ability to continue as a going concern.