Norway Post announces interim results for the first half of 2003
Norway Post’s interim financial report for the first half of 2003 shows growth and a positive development in results. The company’s total operating revenues rose by five per cent. Its result before tax turned from minus to plus, compared with the first half of last year. Underlying operations improved by NOK 150 million. Restructuring projects are progressing according to schedule and the streamlining work continues.
Norway Post Group’s operating revenues for the first six months of 2003 were NOK 7,787 million. This is up NOK 371 million, or 5 per cent, from the corresponding period of last year. The volume of letters increased by 4.5 per cent. Direct mail services experienced the strongest growth, but also A and B post increased by 0.2 per cent. The increase in volume within logistics products was 0.6 per cent, while bank transactions in the sales network were down 7.1 per cent compared with the preceding year. ErgoGroup’s revenues increased by 2.1 per cent.
Operating income (EBIT) for the first half of 2003 was NOK 24 million, compared with NOK 28 million for the corresponding period of last year. Operating income before non-recurring items was NOK 20 million, against a loss of NOK 50 million in 2002. In addition, government procurement declined by NOK 31 million, and NOK 49 million in restructuring expenses were charged to operations. Consequently, the underlying improvement in operations was NOK 150 million. Income before tax for the first half of 2003 was NOK 1 million, compared with a loss before tax of NOK 27 million for the corresponding period of last year.
Results are influenced by the ongoing streamlining process, and by the growth within letters and logistics. ErgoGroup continues its adaptation to a persistent weak IT market, and has inititated several measures to reduce costs.
The parent company’s workforce was reduced by 1,458 full-time equivalents from the preceding year to 18,962 full-time equivalents. The workforce of the subsidiaries was reduced by 151 full-time equivalents to 4,109 full-time equivalents. Group revenues per full-time equivalent amounted to NOK 673,000 for the first six months of 2003 against NOK 608,000 for the corresponding period of 2002.
Norway Post’s delivery quality for A-priority overnight was record high with 88.4 per cent – an improvement from 85.3 per cent at the same time last year. This is the best result ever achieved in any individual quarter and well above the 85 per cent licence requirement.
– We see a positive trend in several areas. There is a growing request in the market for Norway Post’s products, our streamlining programmes prove to be successful, and we can see their effect on the group’s financial performance. Also, our delivery quality is better than ever, says Norway Post’s Chief Executive Officer, Mr. Kaare Frydenberg.
For additional information, please contact:
– Elisabeth H. Gjølme, Vice President Information, tel: +47 23 14 80 88, + 47 901 40 449, [email protected], or
– Norway Post’s 24 hour media service telephone: +47 23 14 80 00
– www.posten.no
