Postal and logistics group Deutsche Post DHL said it would review the restructuring at its freight division, which has proved tougher and more costly than expected, after reporting a lower-than-expected first-quarter operating profit.

“We saw a moderate start to the year, as we expected,” chief executive Frank Appel said yesterday after the company reported earnings before interest and tax (Ebit) of €720 million, against forecasts for €751 million.

Restructuring at its freight forwarding business has been more difficult than anticipated, resulting in Deutsche Post scrapping its original 2015 profit target last year.

The division is trying to move towards paperless systems, but implementing new IT systems has proved more complicated than expected in those countries selected to pilot the scheme.

The results from the pilot countries will now be reviewed by a new management team, put together after the executive board member responsible for the division, Roger Crook, stepped down last month, handing his responsibilities to Appel.

“We will take the time to see if we can reduce the complexities before we decide on the further roll-out,” chief financial officer Larry Rosen told journalists, adding it was too soon to give a time frame for when results of the review would be made known.