The week that was: 19 March 2010
Financial results aplenty as Post&Parcel sifts through this week’s big stories… Welcome to the week that was, which is dominated by financial results. But fear not, put your calculators away, we’ve done the hard work for you – so let’s dig in.
Could the tide be finally turning on the perilous economic storm? Things are looking up in Memphis after FedEx reported a 7% rise in revenue to $8.7bn in its Q3 results. Net income was $239m, up 146% from last year’s $97m, with the company reporting earnings of $0.76 per diluted share for the period ended 28 February, compared to $0.31 per diluted share a year ago. Chairman, president and CEO Fred Smith described the results as “solid”, as FedEx revealed that revenue increased to $8.7bn, compared to $8.14bn for the same period last year. Operating income stands at $416m, up 129% from $182m, whilst operating margin was reported at 4.8%, up from 2.2% the previous year. “Outstanding execution of our business strategy and an improving global economy drove solid financial performance in the third quarter,” said Smith.
Over in France, and Jean-Paul Bailly announced that La Poste has been able to “withstand the financial crisis” due to the diversity of the business, despite reporting a 15% drop in operating profit for 2009 as it published its annual results. Operating profit was reported at EUR 757m, compared to EUR 866m for 2008. Revenue fell from EUR 20.8bn in 2008 to EUR 20.53bn, a 1.3% drop, whilst EBITDA was up from EUR 1.843bn to EUR 1.867bn. Profit attributable to shareholders stood at EUR 531m – a rise of 0.4% compared to 2008 levels. Bailly, the chairman and CEO, stressed: “The diversity of La Poste’s businesses has enabled the group to withstand the financial crisis and the inroads made into its business by electronic exchanges. The fact that La Poste’s revenues and operating profit are only slightly down, and its EBITDA remains unchanged, is testimony of the group’s ability to contain operating costs, while pursuing its policy of investment and improvement in services.”
European neighbours Austrian Post also had its accountants on overdrive this week as they released its 2009 results. The message wasn’t as optimistic as FedEx’s after a company statement informed us: “The economic crisis did not leave Austrian Post untouched, and placed considerable burdens on the company in 2009. The recession put increasing pressure on letter mail and parcel revenues, due to the fact that many customers also tried to achieve cost savings for postal services.” Revenue declined 3.5% (EUR 84.5m) to EUR 2.36bn, and company’s EBIT was also down 11.9% (EUR 20.1m).
In better news, union members employed at TNT have approved the in-principle agreement on a new collective labour agreement (CLA) and a social plan, which will be in effect until the end of 2012. The agreements concern all 31,000 TNT employees in the Netherlands, with the exception of the mail deliverers and Saturday delivery staff, who are covered by separate collective agreements. “All TNT employees in the Netherlands will receive a 0.7% pay rise as of 1 January 2010. For the TNT Post entities (with the exception of TNT Post Parcel Service) a 1% rise has been agreed as of 1 January 2011 and 0.2% as of 1 October 2011,” said a TNT spokesman.
And finally…
As media partner to the prestigious World Mail Awards, Post&Parcel wants to remind all readers that companies only have only a few days left to submit their entries, at www.mailawards.com. The closing date is 24 March. The winners will be announced at the World Mail Awards’ ceremony in Copenhagen on 15 June, on the eve of Triangle Management Services’ World Mail and Express Europe Conference. Apply now and you could be collecting an award this summer!
