April 12, 2006 9:00 AM, EDT

DHL Struggling to Make Profit in U.S., Journal Reports

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erman firm Deutsche Post it will continue to post losses in North America this year, after having previously forecast that it will be making money by the fourth quarter of this year, the Wall Street Journal reported Wednesday.

The company, which owns delivery firm DHL, is losing about half a billion dollars annually in its U.S. operations, the paper said.

DHL said it has about 7% of the U.S. domestic express market, which is dominated by FedEx Corp. and UPS Inc., the Journal reported.

Deutsche Post has had trouble building a reliable network in the U.S., despite investing heavily, the Journal said.

The company said it now has a strong network in place and that its service is at all-time highs, the paper reported.

DHL Americas is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.