German postal company Deutsche Post said Tuesday it expects a strong rise in earnings in 2005 thanks to further cost-cutting and lower taxes resulting from the adoption of new accounting standards. At a press conference, company financial officer Edgar Ernst said net earnings could be boosted by 500 million euros (655 million dollars) as a result of adopting the International Financial Reporting Standards (IFRS). In a statement to the Frankfurt Stock Exchange, Europe's largest postal company said that "regarding IFRS group accounts for 2005 and subsequent years this will lead to a reduced group tax rate of 20 percent". This would produce a "significant positive impact" on net income reported by the group. Meanwhile earnings growth is to continue as Deutsche Post carries out its cost-cutting and efficiency programme "STAR". Last year, the programme helped to cut costs by 862 million euros, with further savings of 1.4 billion euros foreseen in 2005, the company said. Deutsche Post said it expects its operating profits in 2005 to reach at least 3.6 billion euros, after last year's 12.5 per cent rise to 3.35 billion euros. --more 1444 Local Time 1144 GMT
