The week that was: 30 April 2010
Solid results for UPS and SingPost, whilst Royal Mail workers vote in favour of agreement… Good afternoon and welcome to ‘The week that was’ – your comprehensive round-up of all things mail and express. Please remember that the full articles of all the stories featured in this compilation are available of our News pages.
We start off in Asia this week, as SingPost announced that group revenue grew 9.2% for 2009. The “healthy” yearly results were boosted by SingPost’s strong performance in Q4, where group revenue grew 15.8% to S$133.8m – with growth attributable to better performance in all business segments and the consolidation of revenue from wholly-owned subsidiary Quantium Solutions. Retail revenue posted a 2.4% growth to S$66.9m, as higher contributions from financial services and retail products offset the decline in revenue from agency services. The Group’s rental and property-related income grew 20.9% to S$40.4m. The growth was underpinned by higher rental income from Singapore Post Centre and the leasing of space at the repurposed post office buildings. Net profit for the Group rose 10.9% to S$165m.Ng Hin Lee, deputy group CEO of SingPost, said: “While the economy is picking up and growth forecasts are positive, we maintain a cautiously optimistic outlook, given the challenges facing the postal industry as a whole.
Over the Pacific Ocean to the US, and UPS was also in buoyant mood as it posted adjusted diluted earnings per share of $0.71, a 37% gain over the adjusted $0.52 for the prior-year period. Revenue also increased 7% to $11.7bn. Growth in the international package and supply chain businesses, yield improvement and increased operating leverage resulted in margin expansion in all business segments. “UPS’s global strategy clearly proved beneficial in the first quarter,” said Scott Davis, UPS’s chairman and CEO. “Our broad product portfolio and solutions-based approach to customers’ logistics needs enabled the company to capture new business. In addition, our worldwide integrated network generated significant margin expansion. With global economies showing signs of recovery and UPS’s strong start to 2010, we are optimistic about this year and the future.”
It’s been a long time coming, but this week the I’s were dotted and the T’s were crossed, as UK postal workers voted in favour of the Royal Mail-Communication Workers Union agreement. The deal on pay, job security and improved industrial relations was backed by two-to-one in a consultative ballot. Mark Higson, managing director of Royal Mail Letters, said: “This is a great outcome for Royal Mail, its customers and its people. We’re already more than half way through our £2bn modernisation plan and we’re all now focussed on getting on with the changes that will give Royal Mail a strong and successful future, and will protect the future of the Universal Service.” After being at loggerheads with Higson for so long, Dave Ward, CWU deputy general secretary, responded by saying: “This is a strong ballot result for a strong deal and we’re delighted that our members have fully supported this hard fought for agreement. The deal recognises the importance of staff in successfully implementing change and rewarding people for the work.”
And finally…
Over the past year, France, Brazil, and most notably the UK, have all suffered from industrial action as postal workers went on strike. This week saw a Portuguese union call for their members to walk out in response to potential wage cuts. I think the postal network didn’t suffer too badly though, especially after news reached Post&Parcel that the number of strikers participating totalled ten. I blame marketing.
