World leading logistics conglomerate, Deutsche Post DHL, has hotly denied reports that it intends to sell underperforming DHL Global Forwarding.

Describing reports as "false rumours", Deutsche Post DHL Group CEO Frank Appel said: "Deutsche Post DHL Group is not exploring the sale of our Global Forwarding and Freight Division.

"We have a market-leading position in this business with a strong brand, an unmatched global network, and the best people in the industry. DGFF is core to our company and we see a good future for it as part of DPDHL Group," Mr Appel said.

"We are a strong company with a good market position and good people. And when you have that, you will probably turn it into an economic success.

"Yes, a few things went wrong and we have got to repair this, but we believe that this is a highly attractive business with the lowest capital investment, which is also taken into account by analysts," he said.

"The cash flow in DGF is very positive; it has developed very nicely and is much higher than the EBIT, which shows that this is a very attractive segment and therefore it will remain a strategic part of our company," said Mr Appel.

He conceded the difficult experience attempting to implement the 'New Forwarding Environment' (NFE) IT modernisation project, which the company abandoned last November as a EUR345 million (US$383.9 million) write off.