French La Poste approves 2004 budget

The management board of French post office La Poste have approved the 2004 budget, which aims for a break-even of the consolidated result excluding tax and exceptional items, even if the parent company registers a deficit. La Poste says that this is in a difficult environment. The group has recently signed its contract plan with the state for the 2003-2007 period. This suggests that the reduction in post volumes will put the group’s margins under pressure in 2004 and 2005, but the full effects of the modernisation programme will not be felt until 2006. La Poste is predicting 2.4 per cent growth in consolidated turnover in 2004, compared with 1.8% growth in 2002, to €17.3bn.