La Poste Blames Falling Pft On Euro, Rising Energy Costs

La Poste Blames Falling Pft On Euro, Rising Energy Costs
Updated: Thursday, March 29, 2001 10:35 AM ET

PARIS (Dow Jones)–La Poste, the French state mail monopoly, said Thursday exceptional costs and higher energy prices caused a significant drop in profits in 2000.

La Poste reported net profit of EUR139.2 million in 2000, down 51% from EUR283.6 million in 1999.

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La Poste chief executive Martin Vial cited costs related to the euro switchover, higher transport and energy prices, and the implementation of the 35-hour working week were behind the declining profitability.

La Poste turned in an operating profit of EUR420 million, down from EUR590 million in 1999. Revenue rose 4.6% to EUR16 billion, up from EUR15.3 billion in 1999.

Vial said a direct comparison between La Poste’s profitability and Germany’s Deutsche Post, which released results last week, wasn’t appropriate because its standard letter postage rate is much lower than Deutsche Post’s. He said that if La Poste’s rate was the same as Deutsche Post’s, the French group’s net profit would have been EUR1.13 billion.

Deutsche Post reported net profit up 49% to EUR1.5 billion in 2000, on revenue that rose 46% to EUR32.7 billion.

Vial said this wasn’t an argument for La Poste to raise its rates, however, as “Germany’s rates cannot stay that high once the internal market is opened up to competition.”

La Poste’s financial services division posted revenue of EUR3.77 billion, up 8% from EUR3.5 billion in 1999, while the parcels and logistics division posted revenue of EUR2.25 billion, up 16% from EUR1.94 billion in 1999.

Vial said discussions on a parcels and logistics tie-up with Geodis SA (F.GDS, news, msgs), which were to have wrapped up last year, are ongoing, but that “I won’t make any forecast on the outcome.” He said the talks were bogged down due to a series of acquisitions and partnerships La Poste lined up last year, including one with Fedex Corporation (FDX, news, msgs), which have “changed the equation.”

Company Web site: http://www.laposte.fr

-By Greg Keller, Dow Jones Newswires; 33.1.4017-1740; [email protected]