Swiss Post International posts good but slightly lower half-year results

Swiss Post achieved a good result in H1 2008. With net income of EUR 265 million the result was EUR 51 m or 16.1 pct below the record figure of the year-back period. Swiss Post International – Swiss Post’s international unit – generated operating income of EUR 327 m, which was EUR 28 m below the year-back period. The reason for this was due mainly to the current currency situation. SPI is nevertheless likely to contribute to the Group profit of Swiss Post in 2008.

Swiss Post International (SPI), which operates in the international mail, parcel and express business, posted a good operating result again in the first half of 2008. The performance was not quite as good as that in 2007, however. SPI generated operating income of EUR 327 m in the first half. This is EUR 28 m below the year-back figure. SPI lost around EUR 6 m as a result of transactions in foreign currencies, which were converted at a lower rate than in mid-2007. The result from translation of amounts due from international partners was also around EUR 21 m lower.

Most SPI subsidiaries were able to lift their operating income again compared with last year. SPI intends to continue along its growth path in the next few years with a number of ongoing projects in sales and with additional acquisitions. SPI is thus driving the steady expansion of its international network. Already at the beginning of 2008 SPI acquired the Swedish letter processor IMS Europe AB.

Swiss Post achieved a good result in H1 2008. With net income of EUR 265 million the result was EUR 51 m or 16.1% below the record figure of the year-back period. Swiss Post International – Swiss Post’s international unit – generated operating income of EUR 327 m, which was EUR 28 m below the year-back period. The reason for this was due mainly to the current currency situation. SPI is nevertheless likely to contribute to the Group profit of Swiss Post in 2008.

Swiss Post International (SPI), which operates in the international mail, parcel and express business, posted a good operating result again in the first half of 2008. The performance was not quite as good as that in 2007, however. SPI generated operating income of EUR 327 m in the first half. This is EUR 28 m below the year-back figure. SPI lost around EUR 6 m as a result of transactions in foreign currencies, which were converted at a lower rate than in mid-2007. The result from translation of amounts due from international partners was also around EUR 21 m lower.

Foreign currency situation also having a positive impact
Roman Hofer, CFO of Swiss Post International Management AG, explains: “The foreign currency effects are not making a complete impact on the half-year profit figure, as amounts due are always offset by liabilities”. The net burden of current foreign currency constellations is reducing income by only around EUR 2 m compared with last year. CFO Hofer is confident that “SPI will exceed its year-back profit figure”.

Clear increases for subsidiaries
Most SPI subsidiaries were able to lift their operating income again compared with last year. SPI intends to continue along its growth path in the next few years with a number of ongoing projects in sales and with additional acquisitions. SPI is thus driving the steady expansion of its international network. Already at the beginning of 2008 SPI acquired the Swedish letter processor IMS Europe AB.

Still one of the leaders internationally
SPI is still one of the top postal service providers worldwide, thanks to its growth strategy. It is now number five on the global cross-border letters market after Deutsche Post, United States Postal Service, Great Britain’s Royal Mail and France’s La Poste. Its annual growth target will remain in the region of 6-8%. The wholly owned subsidiary of Swiss Post currently employs around 1,264 people in eleven European countries, five major cities in Asia and in the USA. It increased its average headcount by 166 positions in the first half of 2008.