Posten, the Swedish national postal operator, yesterday announced net 2006 operating earnings downby 31.5% to SEK 1.013 billion (EUR 109.7 million) from SEK 1.478 billion (EUR 161 million) the year
before.The year-on-year fall in net profit was down to restructuring costs of SEK 617 million (EUR66.8 million) in the fourth quarter. Posten said the restructuring was justified in that it wouldbring about cost savings of SEK 300 million (EUR 32.5 million) per year from next year onwards.
Gross operating earnings grew 12.5% in 2006 to SEK 1.4 billion (EUR 151.6 million), from SEK1.28 billion (EUR 138.6 million) the year before. Net revenues also grew, by almost 10%, to SEK27.8 billion (EUR 3.01 billion), from SEK 25.3 billion (EUR 2.74 billion) in 2005.
Posten president and CEP Erik Olsson said that, despite the restructuring costs, earningsthis year had surpassed the group’s financial target. “Posten is entering 2007 with excellentchances for further expansion and an even sharper competitive edge,” he commented.
The acquisition in mid-2006 of business information company Strålfors, together with a robusteconomy and intensified sales efforts by the company, helped Posten’s figures, itsaid. Strålfors grew by 20%, while logistics and direct marketing services each grew by 8%.
End-to-end solutions for the growing distance trade softened the fall in mail volumes andmaintained income from messaging, Posten’s biggest business area.
“With our new and more specialised operational structure as a base, Posten will continue tomake our customers’ messaging and goods flows more effectively, while also offering unique receiverrelations with all of Sweden’s households and businesses,” Olsson added.
The group’s equity-assets ratio remained at 33%, while operating cash flow grew 15.6% to SEK2.6 billion (EUR 281.6 million) from SEK 2.25 billion (EUR 243.7 million) in 2005. Posten’s boardhas proposed a SEK 400m (EUR 43.3 million) dividend payout, compared to SEK 175 million (EUR 18.9million) distributed on the basis of the 2005 results.
