Deutsche Post AG, Europe's biggest postal service, raised fourth-quarter profit 27 percent on lower health-care and tax costs and new acquisitions.

Net income rose to about 891 million euros ($1.1 billion), from 708 million euros ($844 million) a year earlier, according to figures derived by subtracting nine-month from full-year numbers released by Bonn-based Deutsche Post. Revenue rose 5.2 percent to 12.1 billion euros ($14.2 billion) from 11.5 billion ($13.7 billion). Spokesmen weren't immediately able to confirm the figures.

Deutsche Post, which will release a full earnings report on March 14, has been saving money by merging functions of new businesses bought over a six-year shopping spree. Chief Executive Officer Klaus Zumwinkel has made about $20 billion in acquisitions, including DHL Worldwide Express and Exel PLC, to expand abroad in preparation for losing a legal monopoly on German mail delivery as of 2008.

Full-year earnings before interest and taxes rose 25 percent to 3.8 billion euros ($4.5 billion) The company said that earnings before interest and taxes will reach at least 5 billion euros ($6 billion) by 2009.

Net income last year surged 40 percent, to 2.2 billion euros ($2.6 billion).

The DHL express-delivery business in the U.S. wrote down 434 million euros ($517 million) of goodwill last year, Deutsche Post said, without commenting on the region's earnings. The company had forecast that the North American unit would post a 2005 loss of 400 million euros ($477 million) and break even by the fourth quarter of 2006 as it works to raise revenue with more marketing, new hubs and more dropoff boxes to compete with rivals, including UPS.

The U.S. express business ``will continue its path toward break-even in the coming years,'' Deutsche Post said.