Post Danmark first nine months of 2008 results
In the first nine months of the year, Post Danmark achieved a profit after tax of DKK 666 million compared with DKK 401 million in the same period the year before. This is an improvement of DKK 265 million and a somewhat higher profit than expected. The operating profit amounted to DKK 726 million compared with DKK 590 million the year before, equivalent to an increase of 23 per cent. Against this background, Post Danmark’s expectations for a somewhat higher profit before tax for 2008 than was recorded in 2007 are maintained, which is in accordance with the earnings expectations published earlier.
– The profit improvement in the first nine months of the year was the result of growing revenue and lower expenses. In light of the economic slowdown, our performance was satisfactory, also when we look at associates and joint ventures which contributed a large part to the profit improvement, Helge Israelsen, CEO, Post Danmark, says.
Income rose by DKK 108 million compared with the same period last year, owing to a slower transition to the low-priced C letter than expected and despite declining volumes for the main products. The lower expenses resulted from a staff reduction and a downward adjustment of DKK 126 million made in relation to Post Danmark’s pension adjustment obligation.
– In the first nine months of the year, Post Danmark continued the major changes which are to strengthen our company in an increasingly competitive environment. This means fewer employees and as, at the same time, we have been able to retain more senior employees in our company, we have reduced both our direct payroll costs and costs in relation to the recruitment and training of new employees, Helge Israelsen says.
On 1 April 2008, Post Danmark published plans for a merger with Posten AB. The parties aim at completing the merger with effect from 1 January 2009. The effects of this forthcoming merger are not included in the Interim Financial Report, except for expenses relating to the preparation of the merger which in 2008 are expected to amount to approx. DKK 75 million, of which DKK 39 million was paid in the first nine months of the year.
– The Danish and Swedish parliaments have made the necessary legal amendments to enable the merger between Post Danmark and Posten AB. We have completed a due diligence process and analysed the two organisations’ IT platforms in order to prepare and implement the merger when the preparatory work is completed and the application has been considered by the EU competition authorities. We still expect the merger to take effect from 1 January 2009, Helge Israelsen says.
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