Strong mid-year results for Posten
– Growth and earnings improvement in all core operations
– Net sales increased by 15 pct to total SEK 15,062m (13,126)
– Operating earnings improved by 30 pct to total SEK 1,388m (1,070)
– Net earnings increased 21 pct totaling SEK 1,045m (864)
– The government made a decision on June 14 concerning the future of the Cashier Service
Posten is reporting growth and an increase in earnings for all core operations. Net sales increased by 15 pct, totaling just over SEK 15 billion. At the same time, our operating earnings improved by a full 30 percent. This is evidence of our strength, and shows that we have succeeded in the transition to our new operational structure without losing momentum. Posten has been able to combine an increased level of specialization with its reliable delivery quality and unique ability to reach all of Sweden’s households and companies each workday. Not only has this enabled us to increase sales for our existing customers, but we have also competed and won valuable contracts with new customers.
We are especially pleased that our logistics operations have defied increasingly tough international competition to grow a full 12 percent during the year’s first six months. With operating earnings of SEK 196m (-76), we can clearly see that our rationalization and specialization activities have had the necessary effects. With continued growth maintaining profitability we continue to develop into the most self-evident strategic partner for companies looking for Nordic logistics solutions.
The parallel development within Stralfors is going according to plan, as the company is experiencing both strong growth in information logistics and keeping the integration of the printing operations on schedule.
The projects and ongoing rationalization activities that Posten is conducting allows us to present a broader and more competitive portfolio of communication and logistics services. Proof of our ability to streamline operations lies in the fact that every quarter has shown a measurable increase in productivity since the beginning of 2003.
Competition is increasing for all our operations. The Swedish postal market has been completely deregulated since 1993. Now it will be very interesting to follow the upcoming decision-making process for a fully deregulated EU postal market. This will bring interesting development opportunities for Posten, thanks in part to Stralfors’ platform in Europe. The Swedish Parliament’s decision on June 14th has been an important milestone. The decision means that Posten’s obligation to provide essential financial transaction services through the Cashier Service will cease as of January 1, 2009. This welcome decision eliminates the uncertainty that has surrounded the future of the Cashier Service within Posten.
1 GBP = 13.8439 SEK
