Parcels and logistics business improved for Finnish postal group Itella in the third quarter of2010 helping to drive up profits and revenues.
The Itella Group increased net sales by 3.8% to €428.1 million in July-September 2010, whileoperating results moved into the black with a €4.4 million profit compared to last year’s €5.6million loss. Towards the end of the quarter, logistics volumes both in Finland and internationallyshowed marked growth while parcel services offered for distance selling also strengthened, thecompany said.
Over the first nine months of 2010, group net sales rose only fractionally to €1,332.7 million,while operating profits were down to €16.5 million from last year’s €22.1 million.
Jukka Alho, President and CEO, commented: “The economic upswing affected the demand for Itella’sservices relatively late, but there was a very noticeable change in the third quarter. We have seengrowth especially in domestic parcel services and in logistics volumes across the board. Ourbusiness in Russia is also experiencing similar positive development.”
Itella Logistics increased Q3 revenues by 13% to €169 million and reduced the operating loss to€3 million from the previous year’s €14.1 million. Over the first nine months, its revenues grew4.8% to €492 million and the loss was reduced to €11.6 million from €30 million.
Itella Mail Communication had a 1.7% revenue drop to €255 million in the third quarter butimproved its operating profit slightly to €8.5 million. Over the nine months, its revenues declined3% to €821 million, while lower mail volumes and a 1% parcel volume decline. Parcel volumes haverisen significantly since the summer, however.
