UPDATE 2-Deutsche Post reports 18 pct rise in Q2 profit

(Adds more detail, closing share price)

FRANKFURT, July 23 (Reuters) - German mail and logistics group Deutsche Post AG (DPWGn.DE) reported an 18 percent rise in its second-quarter underlying operating profit, despite some signs of slower growth in the air delivery market.

Deutsche Post said according to preliminary results revenue grew by around 4 percent excluding currency effects. Including the impact of foreign exchange, sales increased by 9 percent compared with the previous year.

In the second quarter of 2007 Deutsche Post reported earnings before interest and tax (EBIT) of 727 million euros ($1.14 billion) on sales of 15.44 billion euros. Adjusted for one-offs, second-quarter operating profit was 703 million euros.

On an underlying basis all divisions met or exceeded last year's second-quarter results, the company said.

Shares in the Bonn-based company closed with a gain of 1.59 percent at 16 euros in Frankfurt.

Deutsche Post stuck to its forecast of reaching an full-year underlying operating profit of 4.1 billion euros.

"Based on the first-half results and assuming no significant worsening of the global economy, the group is maintaining its full-year guidance for 2008," the company said.

Deutsche Post added that, "while the U.S. air express market continues to soften, measures to restructure DHL Express U.S. are on track and negotiations with UPS are making satisfactory progress".

DHL has struggled to become profitable in the U.S. market, which is dominated by UPS (UPS.N) and FedEx (FDX.N).

UPS is negotiating to conclude a 10-year agreement with Deutsche Post express mail unit DHL to carry packages by air for DHL within the United States, and between the United States, Canada and Mexico.

Deutsche Post said it will publish final results on July 31. (Reporting by Nicola Leske; Editing by Greg Mahlich)