Czech Post halves profit estimate for 2008
The reason for the cut is an economic slowdown in November and a need to create provisions for investment in highly speculative securities abroad.
Czech postal services provider Ceska posta has lowered its plan for this year’s profit to Kc250m from the original Kc504m, said Chief Executive Petr Sedlacek.
Last year, Ceska posta made a pre-tax profit of Kc795m.
Ceska posta had to cut its planned profit to be able to pay bonuses of 20% of wages to its over 36,000 employees at the end of the year, Sedlacek said.
The management has agreed on the change with the supervisory board as well as with the unions.
Sales for November will be Kc200m lower than expected. The company still still analysing the reasons. One of them could be lower number of packages from abroad and clients’ preference of cheaper services.
Ceska posta runs nearly 3,400 branches and annually delivers around one billion letters, postcards, parcels and other items. It is to be transformed from a state-owned to a joint-stock company next year.
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