Posten Interim Report January – June 2004
Parcel volume increased eight percent, other mail classes rose by three percent. Financial-service transactions decreased by 17 percent.
Operating earnings improved to SEK 279m (-513). Earnings include provisions of SEK -136m (-383) and capital gains of SEK 47m (-1).
Measures for which provisions have been made will lead to annual savings of SEK 150m.
After-tax earnings improved to SEK 405m (-483).
Cash flows before financing activities totaled SEK 317m (-389).
Message from Erik Olsson, CEO:
Posten's financial results for the first six months of 2004 improved considerably compared to the same period last year. Over the past four quarters we have increasingly witnessed a positive earnings trend, spurred by cost-cutting and efficiency-enhancement measures. The swift improvement is exciting, not to mention critical for Posten's business going forward.
Aside from the steps taken to cut costs and grow revenues, we have begun implementation of the strategy devised last year to restore Posten's profitability and reputation. Five core objectives – targeting employees, corporate reputation, competitiveness, cost-efficiency and profitability – have been set and quantified. By year-end 2006 Posten will have achieved tangible improvements in all the afore-cited areas.
On July 1 Posten had switched over to a new and simplified two-division organizational structure: Marketing & Sales and Production & Logistics. [Svensk Kassaservice is not impacted by the changes.] A leaner organization will facilitate managerial and follow-up activities as well as foster enhanced customer interactions.
Consolidated net sales for the first six months grew by three percent, primarily due to an increase in volumes. Operating earnings were SEK 279m (-513). The improvement, though mainly attributable to continued cost-containment measures to lower personnel and consultant costs, also stems from higher revenue, which has provided a four-percent jump in productivity. Cash flow, too, has improved, totaling
SEK 317m (-389).
Posten's strategy of focusing on Sweden and the Nordic region as principal markets has resulted in a string of structural transactions during the period. In a move to defend and evolve Posten's market position, a SEK 100m investment in our Danish parcel business was approved. Posten has also entered into agreements to divest itself of parcel delivery operations in the Baltic rim, Poland and Russia. The transaction is subject to regulatory approval in each country, respectively. Posten has completed the divestment of Swedgiro's business operations in the Baltics and Poland.
The commission created last year by the Swedish government has published a preliminary report on the future of essential financial-transaction services in Sweden. The matter is of crucial importance to Posten, its customers and the employees of our subsidiary Svensk Kassaservice.
Posten's earnings are trending very satisfactorily; however, creating freedom of action and stability requires continuing, goal-driven improvements.
Please direct any questions
Posten's Press Office, tel +46 (0)8-23 10 10
Posten connects people and organizations around the world by delivering mail promptly, reliably and cost-effectively. We drive value creation by combining conventional postal services with convenient electronic solutions, and integrating these services into customers' businesses. Simply put, we are experts at everything between "From and To." With over 3,000 retail service outlets, we provide daily service to 4.3 million homes
and 800,000 businesses in Sweden. Every day we handle close to 20 million pieces of mail. With sales of over SEK24 billion and roughly 38,000 employees, the group is one of the largest in Sweden. The group's parent, Posten AB (publ), is wholly owned by the Swedish state. For more information, please visit our Web site at www.posten.se
Posten Interim Report January – June 200
