Cost-cutting stabilises Posten Norden’s Q1 results
Continued cost reductions stabilised Posten Norden’s operating earnings despite continued poor demand, the company said upon releasing its Q1 2010 results. Net sales totalled SEK 10,918m (11,779m for the same period last year), whilst operating earnings stood at SEK 532m (601m). Earnings before tax was declared at SEK 542m (699m) with net earnings amounting to SEK 422m (531m).
Group CEO, Lars G Nordström, said: “Posten Norden’s first quarter 2010 was characterised by continued weak demand and consequent adjustments to capacity. Volumes within business area logistics remained at approximately the same level as during the corresponding quarter last year, though with continued hard pressure on prices. The growing distance trade somewhat reduced the volume decrease in the messaging operations and helped to stabilise volumes within logistics. Overall, the group’s net sales, excluding structural and currency changes, fell 2.7%.
“Measures taken on the cost side, initiated in 2008 and early 2009, produced tangible results in both messaging operations. Both also reported improved operating earnings compared to Q1 2009, despite falling revenues. Logistics and Informationlogistics also adjusted their costs, but reported somewhat lower earnings than during Q1 2009. The group’s earnings totalled SEK 532m.
“Our work to form the new group is proceeding according to plan. We anticipate the ongoing structural measures to continue to have an impact during the year. To ensure the realisation of synergies and to make our working methods within the group more efficient, we have given highest priority to co-ordinating the procurement and IT activities. It is positive that, thanks to the merger, we are continuously identifying new synergy and streamlining opportunities in several areas of the company – this is especially true in light of the fact that the significant volume reductions in the traditional postal operations will continue unabated.
“Construction of the best communication and logistics companies in the Nordics is proceeding. Our goal is to be the first choice of the Nordic business community, whether it is for logistics solutions or for communication solutions to, from and within the Nordic region. An important element of this is offering our customers a modern, efficient postal service while maintaining high delivery quality that also meets international standards. But we are subject to the ongoing re-regulation of the postal markets in Denmark and Sweden and the attendant risk that this presents to universal postal service and our continued efforts to adapt and develop our operations to our customers’ changing needs.”
The group was formally established on 24 June 2009 and consolidated as of 1 July 2009. Information for calendar year 2009 and quarterly data prior to July 2009 are pro forma.
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