Mail and logistics giant Deutsche Post AG (DPW.XE) Wednesday said it "may now be reaching the bottom in terms of volume declines" and expects more benefit from its cost-cutting program in the second half of the year and in 2010.

In November, the Bonn, Germany-based company said it plans to cut about EUR1 billion in non-operational costs by the end of 2010. The Express unit, which contribures EUR460 million to these savings, is expected to reach its cost-savings target "by the end of 2009 already."

For the full year 2009, the company said it expects a net profit on a higher valuation of put options on Deutsche Postbank AG (DPB.XE) shares, after a EUR1.69 billion net loss in 2008. A put is an option to sell a security at a specified price, usually within a limited period.

On April 21, the company said net profit for the quarter jumped, and signaled volume declines had stabilized. The Bonn, Germany-based company had said reported EBIT was slightly positive, despite significant restructuring costs and that adjusted EBIT fell less than 50% in the quarter. In the first quarter of 2008, EBIT reached EUR539 million.

The company, one of the largest express and logistics companies, added that it expects the decline in adjusted EBIT to lessen in the second half of the year compared to the first quarter and the expected drop in the second quarter.

Deutsche Post, which competes with the likes of TNT NV (00906.AE), FedEx Corp. (FDX) and United Parcel Service Inc. (UPS), net profit in the first quarter increased to EUR944 million from EUR383 million on the year.

First-quarter EBIT dove to EUR27 billion from EUR539 billion a year earlier because of non-recurring charges related to the restructuring of its U.S. DHL express operations. Its closely-watched adjusted EBIT plummeted 42% to EUR312 billion due to sapping demand and low volumes as well as high wages in the mail division.

Sales for the January-to-March period were EUR11.51 billion compared with EUR13.21 billion.

Deutsche Post shares have shed more than 50% of their value in the past 12 months to EUR9.81 on Tuesday's close, while the Dow Jones Euro Stoxx Industrial Goods & Services index fell only about 38%.

Company Web site: www.dpwn.com

-By Hilde Arends, Dow Jones Newswires; +49 69 29725 506; hilde.arends@dowjones.com