The semi-privatised German post office has blamed an order to repay state aid for a sharp fall in net profits.

Net profits fell to 155m euros (�97m; $153m)during the first six months of this year from about 1bn euros a year earlier, Deutsche Post said.

Profits fell despite a 15% rise in sales to almost 20bn euros.

The European Union had ordered Deutsche to repay 570m euros in state aid during the period.

Cut-backs

Deutsche Post has also been hit by a demand from the German regulator for a cut in the price of stamps.

Deutsche Post said it would prepare a plan to boost its profitability.

Reduced earnings would have to lead to reduced costs, Deutsche Post has warned.

Earlier this month, it said it would cut up to 10,000 jobs, close post offices and raise prices for other products.