Swiss Post: Profit CHF 496 million below 2007 figure
In the first three quarters of 2007, Swiss Post generated Group profit of 496 million Swiss francs. This is CHF 203 million below the year-back figure. The decline is due primarily to higher fuel prices, growth- and inflation-induced additional expenditure and value adjustments on financial investments. Swiss Post expects its full-year result to be down on the previous year.
In the first nine months of 2008, Swiss Post generated Group profit of 496 million francs (2006: 699 million francs). This is CHF 203 million or 29 pct less than in 2007, which was a record year. All product-carrying Group units posted a decline. Growth- and inflation-induced additional expenditure, higher staff costs and value adjustments on financial investments were responsible for the lower profit figure. In addition, cuts in press subsidies and the parallel operation in the “Reengineering Mail” (REMA) project resulted in higher costs. PostFinance had to make writedowns totalling CHF 95 million on its financial investments. CHF 67 million of the writedowns relate to fixed-income investments and the remaining CHF 28 million to equity investments. Thanks to its risk-conscious investment strategy, the loss amounts to only around 0.2 pct of the total investment portfolio (see also PostFinance press release of 22 October).
In the first three quarters of 2007, Swiss Post generated Group profit of 496 million Swiss francs. This is CHF 203 million below the year-back figure. The decline is due primarily to higher fuel prices, growth- and inflation-induced additional expenditure and value adjustments on financial investments. Swiss Post expects its full-year result to be down on the previous year.
In the first nine months of 2008, Swiss Post generated Group profit of 496 million francs (2006: 699 million francs). This is CHF 203 million or 29% less than in 2007, which was a record year. All product-carrying Group units posted a decline. Growth- and inflation-induced additional expenditure, higher staff costs and value adjustments on financial investments were responsible for the lower profit figure. In addition, cuts in press subsidies and the parallel operation in the “Reengineering Mail” (REMA) project resulted in higher costs. PostFinance had to make writedowns totalling CHF 95 million on its financial investments. CHF 67 million of the writedowns relate to fixed-income investments and the remaining CHF 28 million to equity investments. Thanks to its risk-conscious investment strategy, the loss amounts to only around 0.2% of the total investment portfolio (see also PostFinance press release of 22 October).
Compared with the prior year, operating income rose by CHF 136 million (2.1%) to CHF 6,470 million. Over two thirds of the result are still generated by the PostMail, PostLogistics and PostFinance segments. PostFinance made a substantial contribution to this with its higher operating income – a result of the inflow of customer deposits. The investment, which was channelled primarily into the “Reengineering Mail” project, came to CHF 299 million and was financed entirely from Swiss Post’s own funds. At 30 September equity amounted to CHF 2,622 million and was thus still below Swiss Post’s target of CHF 3,433 million.
1 USD = 1.12908 CHF
