Brazil Correios Posts Record $180.28 Mln Net Profit 2005

Brazilian state-run postal service company Correios recorded a record-high net profit of 400 mln Brazilian reais ($180.28 mln/143.8 mln euro) in 2005, up 30 pct year-on-year, the local media reported on June 29, 2006.

The company’s net revenue hit 8.7 bln reais ($3.921 bln/3.128 bln euro) in 2005, a 7.5 pct year-on-year increase.

Correios (www.correios.com.br), which is linked to Brazil’s Communications Ministry, projects investments of 500 mln reais ($225.35 mln/179.75 mln euro) in 2006 and 640 mln reais ($288.45 mln/230.1 mln euro) in 2007. The funds will be allocated for improvement of Correios’ infrastructure, transportation and for the launch of new postal agencies. A total of 230 new agencies are planned to be launched in 2006, the President of Correios, Janio Cezar Pohren, said.

As a comparison, the state-run company invested 280 mln reais ($126.2 mln/100.66 mln euro) in 2005 and 250 mln reais ($112.68 mln/89.88 mln euro) in 2004.

Now, Correios delivers some 32,000 items per day to the all 5,560 Brazilian municipalities. The company has a 343-year history and it is considered the largest logistic service operator in Brazil. Correios operates 12,300 postal agencies and has some 110,000 employees.