Posten Interim Report January – September 2004
Net sales increased one percent to SEK 18,215m (17,954)
– Mail and parcel volumes grew; financial service transactions fell
– Operating earnings were SEK 681m (-417). Earnings for the period include provisions totaling SEK -135m (-419) and capital gains of SEK 206 (-1)
– After-tax earnings improved to SEK 789m (-401)
– Cash flows before financing activities were SEK 289m (-868)
Message from Erik Olsson, CEO:
Posten’s earnings continued to trend upward in the third quarter, while sales rose slightly year over year. Our cost reduction program, resulting in lower personnel expenses, has been a key driver. Capital gains realized on the divestments of BLS-I and Baltic-based Swedgiro have also boosted results. More, provisions were far lower than the year-ago period.
Continued earnings improvement and positive cash flow is, to be sure, very satisfying. However, further improvements are needed to create and sustain freedom of action in the face of changing markets and demand. We are pushing ahead with the effort to implement planned and approved measures aimed at further reducing costs and enhancing operating efficiency.
Electronic substitution, spurred by rapid technological advancements, is a major challenge for Posten. The company is actively working to meet changing needs by developing new services and creating a more customer friendly messaging and logistics business.
Posten’s Customer Satisfaction Index – a measurement reflecting how customers rate our personal service, performance quality and range of products and services- improved for the third consecutive quarter. Though mainly attributable to Posten’s major contract customers, it was also boosted by cash-paying companies and consumer customers. There was no change when it came to small and medium-size contract customers, however. The continued improvement of customers’ confidence in our ability to meet expectations is of course fantastic.
In B2B and B2C mail, which accounts for 90 percent of Posten’s business, there is fierce competition. Posten’s market position is strong but we need to further simplify and clarify our offering, not least when it comes to small and medium-sized businesses. Efforts are underway.
A number of government commissions are studying the effect of regulatory conditions on Posten and its business. It is essential that, in order for Posten to be able to meet its universal mandate while building a competitive business, the findings help to create long-range and stable market conditions.
Please direct any questions
Posten’s Press Office, [email protected], tel +46 (0)8-23 10 10
Posten Interim Report Jan – Sept 2004
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 and convenient electronic solutions, and integrating these services into customer businesses. 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 35,000 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 website at www.posten.se
