Cost-cutting the key to Austrian Post result

The future is bright, despite a drop in turnover and lettermail volumes maintained, Anton Wais, CEO of the Austrian postal service, Osterreichische Post.
Wais said he considered the preliminary results for 2001 as an indication that the positive trend from the previous year, which saw the post make a small profit when it only expected to break even (see Postexpress volume 5 issue 11) would continue.
According to preliminary data the post’s earnings before tax and interest (EBIT), is expected to he approximately Euro23.2 million, compared to Euro I 6.5 million in 2000 while profits from ordinary activities are expected to be about Euro47.3 million up from Euro39.3 million a year ago.
According to the figures available so tar, Osterreichische Post’s turnover for the financial year 2001 will be about Euro I, 5 )5 million, compared to Eurol ,53 1 million in the financial year 2000.
Much of the costs savings have been put down to a major restructuring programme which has seen the loss of some I ,400 jobs in the last 12 months.
Rudolf Jettmar, member of the board responsible for finances, said the drop in sales volume confirmed the need of the cost reduction programme: “We have been able to achieve considerable savings with respect to HR, but also operating expenses, as compared to the financial year 2000.”
The post said there was a drop in sales volume, and put this down to an increase in competition. “The main reasons fur the overall drop in sales volumes are the loss of payments for services in the public economic interest and a decline in compensation payments for counter services,” said a statement.
Wais said while the post laced ‘great challenges’ such as liberalisation of the market it would continue to, “follow a strategy focused on cost orientation, process optimisation and quality improvement,” to help try and tackle the new marketplace.