Romanian Post "on track" to restoring profitability
Romanian government officials met with representatives from the EU, World Bank and International Monetary Fund earlier this month to discuss restructuring the debt at Romanian Post. The move came as restructuring of the company has seen executives stating renewed confidence that the organisation has turned a corner.
Romanian Post said on Tuesday it has cut its operating costs by 13% in the first nine months of this year, compared to the same period last year.
It has now achieved two consecutive months of profitability to close a third quarter with a 472,000 lei ($148,000 USD), compared to the 21.6m lei ($6.7m USD) loss seen in the same three months of 2010.
“The economic results demonstrate that we are on track,” said Romanian Post president Dumitru Daniel Beagoe (pictured above right), who added that ongoing restructuring will continue, along with efforts to carve out new sources of revenue.
“We know that we have a lot of work to do, we have to step up to become an efficient and flexible company and strengthen our position in markets in which we operate.”
Romanian Post is the largest company in Romania, with more than 33,000 employees working in more than 5,000 post offices.
The Romanian postal market is due to be opened up to competition in 2013. Government ministers are currently looking for foreign postal operators to become investors in Romanian Post as the liberalisation deadline looms.
