Posten, the Swedish national postal operator, today unveiled a strong improvement in its half-yearresults, with a tripling of operating profits. A restructuring into separate operating companies in
2007 was also announced.Posten increased January-June revenues by 6% to SEK 13,126 million (€1,421 million), mostlythanks to higher volumes in direct mail and logistics. Operating earnings soared from SEK 394million to SEK 1,070 million, while net earnings improved to SEK 864 million from SEK 394 million.Profit growth was also driven by cost-saving measures.
CEO Erik Olsson said: “Posten continues to show a strong financial development. Astrengthened focus on customers and the momentum of a strong economy mean that we can report growthin volume which has resulted in increased sales. Together with a 5% in productivity, this has ledto an improvement in results. During the second quarter order intake has been strong and there hasbeen a continued high level of business activity.”
In the first half-year, the Messaging & Logistics division increased revenues by 5% toSEK 12,243 million and generated an operating profit of SEK 979 million (SEK 296 million in H1,2005). Direct mail increased 10% to SEK 1,888 million and administrative mail had moderate growthof 2% to SEK 6,711 million.
The Logistics business, covering parcels and freight transport, grew by 9% to revenues of SEK3,621 million. The parcel service accounted for a 5% sales rise, with higher volumes within Swedenthanks to a strong economy and more “distance trading” (mail order and e-commerce) sales, as wellas more parcel shipments within the Nordic region. Freight volumes also rose but there was pricepressure on rates, Posten noted.
Posten also announced that as of January 1, 2007 its three businesses Messaging, Logisticsand Strålfors (IT) will be run as separate companies with clear accountability for results. Asidefrom simpler and clearer management, the aim will be to offer corporate customers better and morespecialized services.
The traditional postal business for consumers and businesses (Messaging) will remain underthe Posten brand. Logistics will be split off into a new B2B company while IT activities will berun through Stralfors. The cashier service is unaffected by the changes.
