Correos net profits down 30 percent
Correos reported that net profits dropped by 30 percent last year to EUR 142.2 million from EUR 204.4 million in 2005. A near 6 percent rise in personnel costs – due to salary increases and a rise in the number of permanent staff – reduced operating profit, although revenues rose 2.7 percent to EUR 2.025 billion from EUR 1.972 billion the year before. Total operating expenses rose 4.8 percent to EUR 1.85 billion.
Correos said it invested over EUR 230 million in new infrastructure, equipment, products and services in 2006 (EUR 143 million buying premises and land), and was planning to spend a further EUR 247.8 million in 2007, the fourth year of its 2004-2008, EUR 1 billion modernisation drive, which has seen it open 16 out of 17 new mail hubs nationwide.
“These results confirm the positive moves in recent years towards consolidating Correos’ leadership in the Spanish postal market,” the group said in a statement.
“Correos has gained economic strength, has advanced in managerial flexibility and efficiency, and has implemented an ambitious plan to incorporate information and communication technologies that allow a more agile response to new customer and client demands, offering a more competitive service in the face of full EU postal liberalisation,” it added.
The state-owned company made the contracts of over 4,000 temporary workers permanent at the end of last year and took on a further 669 new employees. It now has around 65,000 staff.
