Norway Post generated good growth in its parcels and logistics activities in the July-September2011 third quarter, helping to increase underlying profits, but mail volumes continued to
decline.The operating profit before non-recurring items and write-downs for the third quarter rose by22% to NOK 299 million (€38.96 million). But the group’s reported EBIT, including charges andresults of associated companies, dropped to NOK 327 million (€42.6 million) from NOK 632 million(€82.35 million). Pre-tax profits declined to NOK 287 million (€37.4 million) from NOK 615 million(€80.13 million).
The company’s total Q3 revenues rose 4.2% to NOK 5,566 million (€725.2 million), with growthdriven by the logistics segment. Nine-month revenues increased 2.6% to NOK 16,883 million (€2,199.7million).
”Norway Post is working to improve profitability throughout its operations. At the same time,acquisitions are being made in accordance with our Nordic growth strategy in order to improve ourservices to customers,” said CEO Dag Mejdell.
The logistics business improved its Q3 operating profits by 25% to NOK 129 million (€16.8million). Its revenues rose 4.75% to NOK 3,600 million (€469.03 million), and volumes increased9.3% to 9.4 million (€1.2 million) consignments. Over the first nine months, Norway Post increasedlogistics revenues by 5.6% to NOK 10,573 million (€1,377.53 million), with parcel volumes up 6.2%.EBIT dropped to NOK 88 million (€11.47 million) from NOK 266 million (€34.66 million) due to strongcompetition, higher operating costs and investment costs in parcels.
“Cross-border parcels and domestic volumes in Sweden and Denmark contributed to the biggestincrease. In the domestic market B2B parcels had a more positive development in volume than B2Cparcels compared with the same period last year,” the company stated.
Norway Post strengthened its position in the Swedish market in the third quarter by buyingIntertranspedIA and Ytrans, two Swedish logistics companies. “These acquisitions are part of theGroup’s strategic focus on Sweden and help to strengthen our position as a cross-border carrier ofgoods to and from the Nordic region,” said Mejdell.
The mail business saw its Q3 operating profits drop back to NOK 190 million from NOK 240 million(€31.27 million) with revenues down fractionally at NOK 2,424 million (€315.84 million). Profitdevelopments were negatively affected by a continuing decline in volumes for addressed mail, whileprice increases and cost-reducing measures largely helped to uphold earnings, the companycommented. Over the first nine months, addressed letter volumes are down 7%.
