Posten interim report January – March 2004
Net sales rose two percent to SEK 6,253m (6,105).
Parcel volume grew seven percent; other mail classes increased two percent. Financial-service transactions declined 16 percent.
Operating earnings improved to SEK 182m (-16).
After-tax earnings improved to SEK 303m (13).
Cash flows before financing activities totaled SEK 183m (-515).
President and CEO Erik Olsson comments:
Posten’s Q1 2004 earnings improved visibly compared to the same period last year. The dramatically negative cash flow turned positive for the quarter as well as for the previous 12-month period. Over the past year Posten has strategised and reorganised the business to enhance simplicity and clarity. Posten’s first-quarter results bear out these decisions. I’m also pleased to report volume growth for both parcels as well as other mail classes.
A year has passed since I was given the duty and privilege of leading this company. For 368 years Posten has continually reshaped and adapted its business. And though the challenges and changes of the past 12 months perhaps haven’t been greater than those previously faced by Posten, it’s been a rigorously demanding and educational time.
It gives me a profound sense of satisfaction to report that Posten’s day-to-day business operations continue to run smoothly. Posten has achieved the highest delivery performance score for overnight-committed mail for the fourth consecutive year, outclassing competition from around the globe. Posten’s parcel delivery business offers premier service quality, as well.
Net sales for the first quarter rose about two percent, chiefly due to increased volume. Parcel volume grew seven percent, whereas volumes for other mail classes increased two percent. The number of financial transactions continues to decline, though. Posten has seen a dramatic jump in earnings compared to the year-ago quarter. Operating earnings totaled SEK 182m (-16). The improvement is primarily attributable to lower personnel and consultant costs, but also to higher net sales. Productivity has climbed by more than two percent. Cash flows before financing activities totaled SEK 183m (-515) during the period, and Posten’s
rolling 12-month cash flow therefore is positive for the first time in several years. The difference between operating earnings and after-tax earnings is owed to an accounting change (RR 29) regarding pensions. The change has had a one-time positive tax effect because Posten’s superbly managed pension fund had a
surplus, which is now being taken up in the consolidated financial statements.
Posten’s financials are trending in the right direction, but room for maneuver and stability will require continued action. Posten still has a long way to go. The effort to build a profitable and valued Posten continues.
