Posten Norden describes results as “acceptable”
Posten Norden described its latest financial results as “acceptable”, given the current economic turbulence, substantial operational improvements and a rapid merger process. Net sales for the full year totalled SEK 44,633m, whilst operating earnings for the full year totalled SEK 284m.
Excluding restructuring costs of SEK 1,154m, operating earnings for the full year totalled SEK 1,438m. Earnings before tax for the full year totalled SEK 2,439m and net earnings totalled SEK 2,414m.
As part of the merger, an additional dividend of SEK 1,400m was paid to the Swedish state. Post Danmark also divested its share in MIE Group, which represented Post Danmark’s equity interest in Belgian Post, De Post N.V.-La Poste. The divestment produced a capital gain of SEK 2,002m. The Board proposes a dividend of SEK 1,440m
Lars G Nordström, CEO of Posten Norden, said: “Posten Norden’s 2009 result demonstrates the extent to which the recession and substitution have impacted the demand for communication and logistics services. It also clearly indicates the need to be able to rapidly adjust costs to lower income levels. The sharp decline in letter volumes is the main cause of Posten Norden’s lower earnings. Measures begun in the autumn of 2008 to adapt costs to falling revenues have enabled Posten Norden to report an acceptable result, given the circumstances.
“During the year, we decided to take additional steps to address the continued uncertain market situation and other factors that impact our business. The restructuring costs of over one billion SEK charged to 2009 earnings enable necessary adjustments of production capacity within all business areas, modernisation of the service network and rationalisations within administration.
“The merger of Post Danmark A/S and Posten AB was formally completed just over six months ago. Our efforts have been distinguished by a fast pace and good progress. We have focused on creating favourable conditions and working methods without losing focus on customers, costs, quality and employees. It is especially gratifying that our customers are increasingly satisfied and that we have further improved our already excellent delivery quality with improved production processes and expanded employee involvement.
“Thanks to our urgent efforts to adjust costs, and combined with the divestment of De Post-La Poste, Posten Norden’s financial position has actually been strengthened. The construction of the best communication and logistics company in the Nordics has begun.”
