Deutsche Post has been hit by problems at its DHL business

Deutsche Post reported a net income of 255m euros ($390m, �196m), down 61% from a profit of 649m euros a year ago.

DHL, which Deutsche bought in 2002, is not expected to make a profit until after 2009.

The problems at DHL have forced Deutsche Post to write down the value of the US business by 600m euros.

Last month, Deutsche Post appointed a new chief executive after former boss Klaus Zumwinkel found himself at the centre of a tax evasion scandal.

Frank Appel was named as new chief after accepting Mr Zumwinkel's resignation.