June 8, 2018 / 10:25 AM / a year ago

Deutsche Post shares plunge on restructuring costs

FRANKFURT, June 8 (Reuters) - Deutsche Post will take a hit of around 650 million euros ($763 million) this year as it strives to boost profitability at its post and parcel delivery division, it said on Friday, hammering its shares.

Shares in the German company fell as much as 9 percent to an 18-month low of 29.82 euros after it flagged a restructuring charge of around 500 million euros and additional operating expenses of around 150 million euros.

“In order to deliver long-term sustainable growth, we are now consciously accepting short-term negative effects on our earnings”, Chief Executive Frank Appel said in a statement.

Deutsche Post last month said it was working on ways to cut costs at its Post - eCommerce - Parcel (PeP) division after it missed first-quarter profit expectations.

The company on Friday confirmed its forecast for 2020 group earnings before interest and tax of more than 5 billion euros.

At 1015 GMT, its shares were down 6.7 percent at 30.5 euros.

$1 = 0.8514 euros Reporting by Ludwig Burger; Editing by Mark Potter

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