Swiss Post today announced half-year profits for January to June 2010 up by 35% to CHF 484million (€371.3 million) compared to the same period last year. The increase is primarily due to a
rise in customer deposits, higher net interest income and the revival of the economy.Ongoing and completed cost reduction programmes in the areas of logistics and letter post alsoimpacted positively on the company’s profit.
Group revenues rose 2.5% to CHF 4,311 million (€3,307 million) thanks to efficiency gains fromthe new letter centres and cost reductions in logistics – as well as currency effects. The groupheadcount went up by 562 to 45,098 full-time employees compared to the previous year.
PostMail, the group’s mail unit, recorded a drop in its operating profit of 14.17% to CHF 109million (€83.62 million). Revenue slumped to CHF 1,310 million from CHF 1,422 million in the firsthalf of 2009. The fall was somewhat mitigated by an increase in unaddressed promotional mailingsand the effects of various cost-reduction measures. However, addressed letter volumes continued todecline, albeit at a slower pace down 2.6% by the middle of the year. The price cuts introduced on1 July 2009 and the assumption of VAT also had a negative impact on the figures, Swiss Postexplained.
Swiss Post International was affected by the difficult economic environment in some countrieswith its operating profit falling 7% to CHF 27 million (€20.71 million). Its revenues dropped toCHF 382 million from CHF 453 million last year.
PostLogistics, including the express and parcel businesses, benefited from an increase in parcelvolumes of 4.5%, thanks partly to the improved economic situation and electronic trade, as well asto considerable efficiency gains. As a result, its operating profit more than quintupled from CHF15 million (€11.51 million) to CHF 76 million (€58.3 million) during the first half of 2010. Thedivision’s revenues rose slightly to CHF 738 million.
PostFinance made the largest contribution to the Group result with its operating profit rising38.4% to CHF 274 million (€210.26 million). This increase was mainly driven by higher customerdeposits and higher net interest.
Looking ahead, the company expects a good full-year result and to achieve the financial targetsset by the Federal Council. However, the economic situation and volume trends remain uncertain. Inaddition, Swiss Post said it was risky to depend too much on the retail finance market. Therefore,it will continue keeping on eye on the costs and safeguarding its earnings.
