La Poste profits slump, but logistics revenue jumps
By BRUCE BARNARD – JOC ONLINE
LONDON – La Poste, France’s state mail monopoly, suffered a sharp decline in
net
profits last year due to exceptional costs and higher energy prices, but
parcel
and logistics revenue surged. Net profit slid 51% to 139.2 million euros
($125.3
million) in 2000 from 283.6 million euros ($255.2 million) in 1999. Revenue
increased 4.6% to $14 billion and operating profit fell to $370 million from
$520 million.
Chief Executive Martin Vial said higher transport and energy prices, the
implementation of a 35-hour workweek and the costs of switching over to the
euro
eroded profitability.
La Poste’s parcels and logistics division boosted revenue by 16% to $2
billion
as contributions from acquisitions kicked in. The company said its takeover
of
Mayne Nickless in Britain and the acquisition of a controlling 85% stake in
Deutscher Paketdienst (DPD), Germany’s second-largest parcels network, made
it
Europe’s third-largest parcel operator. It remains behind Deutsche Post
World
Net and TPG of the Netherlands, but ahead of United Parcel Service and
Consignia, the newly named British Post Office.
Vial would not comment on the state of negotiations over an alliance with
Geodis, the parcels unit of French state-owned railway SNCF. Talks have been
slowed by a series of acquisitions and partnerships, including a tie up with
FedEx last year.
Bruce Barnard can be reached at [email protected].
JOURNAL OF COMMERCE, 30th March 2001
