Japan's Postal Corp eyes US$9.43Bln savings ops profit
The Postal Public Corp. projects a 1.13 trillion yen (US$9.43 billion) net profit for its savings operations and a 2.6 billion yen net loss for mail services in the first year of business, according to a plan approved by a government council Tuesday.
The council charged with creating the public corporation also decided that no new funds from the postal savings and postal life insurance systems would be allocated to trust banks for investment in stocks.
The 2003 business plan, drawn up by the Postal Services Agency, was based on the medium-term business plan through fiscal 2006.
It projects a 3.9 trillion yen cumulative profit of at least 3.9 trillion yen for the postal savings operation and an aggregate profit of more than 50 billion yen for mail services. Cost cuts of 239.1 billion yen are also included.
Costs in fiscal 2003 will be cut 173.1 billion yen over 2001 levels. The cost cuts in 2002 have yet to be finalized, but 2003 cuts “will be approximately half (85 billion yen),” according to a Postal Services Agency official.
The postal savings and postal life insurance operations will increase their efficiency in administrative processing and improve their customer service and counseling capabilities.
The mail services will reduce labor costs, expand next-day delivery territories, and lower postage rates in an effort to boost mail volume and return to a profit.
