Norway Post saw profits drop sharply in 2011 due to cost-reduction measures but its underlyingprofits improved and Q4 results showed an upturn.
The postal operator reported a preliminary operating profit before non-recurring items andwrite-downs of NOK 1,051 million (€139.69 million), up 10.4%. This was the best operating profit infive years.
But operating profits including these items dropped back to NOK 956 million (€127.07 million)from NOK 1,638 million (€217.72 million) in 2010, and pre-tax profits were nearly halved to NOK 799million (€106.20 million) from NOK 1,499 million (199.24 million) in 2010.
“We’ve succeeded in implementing major reorganisations and considerably improving theefficiency of our mail operations. In the logistics segment, profitability programmes have beenimplemented, including the coordination of parcels and goods production,” says Dag Mejdell, the CEOof Norway Post.
Norway Post Group’s operating revenues rose 2.4% to NOK 22,984 million (€3,056 million) in2011. The logistics segment experienced strongest growth in the parcels area, while its Nordicposition was strengthened through the acquisition of five logistics companies last year.
In Q4, 2011, Norway Post increased underlying Ebit to NOK 457 million from NOK 307 million,while the reported Ebit rose to NOK 386 million from NOK 143 million.
The volumes of physical letters are continuing to decline as a result of the transition toelectronic alternatives. The A-mail and B-mail volumes fell by 6% last year. In order to deal withthese developments and strengthen the mail area in future, Norway Post has launched a digitalmailbox, Digipost. Norway Post has also asked the Ministry of Transport and Communications toconsider making changes to its framework conditions in the White Paper on Norway Post which isexpected to be presented in the spring session of parliament.
The group’s mail business improved profits dramatically to NOK 938 million from the previousyear’s NOK 68 million thanks to higher prices and cost reduction measures. Revenues were flat atNOK 10,607 million.
But logistics profits dropped to NOK 100 million from NOK 272 million in 2010 due to write-downsof NOK 158 million and pressure on margins. Revenues rose 3.9% to NOK 14,251 million and parcelvolumes grew 5.6%.
