Deutsche Post DHL, the mail and logistics company, said on Thursday that underlying earnings in 2009 would be higher than expected after it cut costs sharply to combat the global economic crisis and the slow decline of its German postal business.

Pointing to “the first signs of market recovery”, Deutsche Post said underlying earnings before interest and tax should reach €1.3bn ($1.9bn) this year compared with its previous target of €1.2bn. The company also said it continued to expect a net profit for the full year.