Results turnaround for Norway
A reversal of fortunes was witnessed by Norway Post in 2003 according to its preliminary results for the year. The group has forged ahead with restructuring plans to turn around a loss of NKr33 million in 2002 to earnings of NKr512 million for 2003.
Adjusted for non-recurring items, lower government procurement and provisions for restructuring, the underlying operations improved by NKr649 million. Group earnings before tax were NKr461 million, up NKr567 million from 2002, and total letter and parcel volumes increased. IT results remained stable while the decline in bank transactions continued. Norway Post’s extensive Efficiently and restructuring initiatives improved profitability and resulted in record-breaking quality level.
“The results for 2003 show that Norway Post is in process of becoming a competitive enterprise. Our efficient and business oriented approach results in higher profitability, at the same time as improved service and quality has lead to a growing demand for Norway Post’s services,” said Norway Post chief executive Kaare Frydenberg.
It said job cuts of about 1,800 along with streamlining of the post had helped to transform its finances. It also said the government’s procurement of unprofitable postal services has almost halved in five years, from NKr570 million to NKr305 million in 2003.
The total letter volume for the year rose by 3.2 per cent, the growth coming from advertising products. A and B mail volumes declined by 0.7 per cent from the preceding year. Logistics volumes grew by eight per cent. The decline in the demand for bank services in the sales network continued, the number of bank transactions in 2003 being 6.5 per cent lower then in the preceding year.
Cost-savings initiatives are being implemented as planned and will continue. In parallel with the streamlining of Norway Post, government procurement of unprofitable postal services has almost halved in five years, from NKr570 million to NKr305 million in 2003.
