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Post Danmark announces “historic decline”
Post Danmark reported a “historic decline” in 2009, as operating profits fell to DKK 136m compared to DKK 817m the year before. The lower operating profit relative to 2008 resulted from the general economic decline and a marked decline in volumes of letters and parcels.
“In 2009, Post Danmark experienced a historic decline in mail volume, and today about 9% fewer parcels and letters are sent compared with earlier. As a result, operating income decreased much faster than it was possible to reduce expenses,” said K. B. Pedersen, executive vice president of Posten Norden and CEO of Post Danmark.
Post Danmark has launched a wide-ranging rationalisation programme to balance expenses with income.
“Significant restructuring efforts are being carried out with the aim of lowering the level of expenses and improving the operating profit as a result. However, the company’s expenses are to a large extent linked to the maintenance of a distribution network ensuring delivery to all addresses within the country six days a week. This makes it difficult to reduce expenses at the same pace as the decrease in income,” said Pedersen.
Post Danmark’s total after-tax profit for 2009 was DKK 1,640m compared with an after-tax profit of DKK 965m the year before. The positive profit development was due entirely to the sale of Post Danmark’s stake in the Belgian postal company, De Post – La Poste, which contributed with DKK 1,555m.
“In light of the general development in the economy, the profit is acceptable and at the level expected in the Interim Financial Report for the Third Quarter of 2009. It is expected that 2010 will continue to be influenced by weak economic conditions and slightly decreasing revenue as a result,” a company statement said.
“During these difficult times, we are pleased with the successful merger with Posten AB in 2009, whereby the group Posten Norden AB was established. This historic merger is aimed at creating a strong, Nordic postal and logistics company that is well prepared for a liberalised market with strong competition from national and global players,” concluded Pedersen.