Swiss Post saw its profits drop back over the first nine months of the year due to higher costs.
The postal operator generated group profit of CHF 496 million, 29% down from the record CHF699 million over the same period last year. The operating profit declined to CHF 499 million fromCHF 687 million. Swiss Post revenues rose 2.1% to CHF 6,470 million.
The profits decline was due primarily to higher fuel prices, growth- and inflation-inducedadditional expenditure and value adjustments on financial investments, Swiss Post said. Inaddition, cuts in press subsidies and the parallel operation in the “Reengineering Mail” (REMA)project resulted in higher costs.
PostLogistics, incorporating express, parcel and logistics activities, increased its revenuesby 4.8% to CHF 1,116 million but the operating profit dropped to CHF 25 million from the previousyear’s CHF 46 million.
PostMail, the domestic mail business, saw revenues drop by 3.2% to CHF 2,130 million and itsoperating profit declined to CHF 155 million from CHF 190 million. Swiss Post Internationalsuffered a 5.9% revenue decline to CHF 776 million, and its operating profit dropped to CHF 21million from CHF 29 million.
Swiss Post now expects its full-year result to be down on the previous year.
