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Hermes mulls legal steps if German government extends VAT exemption for Deutsche Post

Posted by | Aug 27, 2007 | |

Hermes, a Hamburg-based logistics groups, is considering legal steps if the German Finance Ministry extends the VAT exemption for Deutsche Post World Net AG beyond 2007, its Managing Director Hanjo Schneider told Frankfurter Allgemeine Zeitung.

The tax exemption violates EU law, he said.

Deutsche Post enjoys an exemption from Germany’s 19 pct value-added tax in its letter and parcel services in return for its promise to deliver mail to every German household.

Without this advantage, Deutsche Post would have to raise its parcel prices ‘substantially’, Schneider said.

Hermes, which owns 29 pct in TNT NV’s TNT Post, moved some 50 mln parcels last year.

Schneider also criticized government plans to introduce minimum wages for postal workers.

If Deutsche Post’s wage agreement becomes a benchmark for the industry, the road into the letter market for new providers remains blocked, he said.

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Norway Post: Continued growth, but lower earnings

Posted by | Aug 27, 2007 | |

Norway Post’s half year results show continued growth in revenue for the Group. The results are lower compared to the same period last year as a result of higher personnel and transportation costs. Norway Post is implementing initiatives to strengthen the profitability of the Post segment.

The Group has experienced positive development in operating revenues, which is in line with the Group’s Nordic growth strategy. Total operating revenues after the first six months were NOK 13.4 billion, an increase of 17.8 per cent from the same period last year. The ICT and Logistics segments contributed to revenue growth following acquisitions and high activity in the marketplace. Second quarter earnings in the Post segment were at the same level as last year.

Earnings before taxes for the first six months were NOK 879 million, compared to NOK 565 million for the same period last year. Earnings were high due to a profit of NOK 625 million from the sale of Norway Post’s distribution center building in Oslo during the first quarter. The Group’s earnings before taxes (EBIT) prior to adjustments for special items were NOK 268 million, compared to NOK 625 million after the second quarter last year.

The Post segment is the reason for the decrease in earnings, mainly due to increased personnel and transportation costs, and the establishment of CityMail in Denmark. The Logistics and ICT segments show positive growth prior to adjustments for special items. The EBIT for the ICT segment showed the same results as last year.

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Firms counting cost of UK postal walk-outs

Posted by | Aug 26, 2007 | |

Businesses are still counting the cost of postal strikes and say the action has the potential to lose them thousands of pounds. Royal Mail workers walked out in two 24-hour strikes followed by a campaign of staggered action, in which each division was allocated a different day to revolt in a bid to cause continuous disruption.

Members of the Communication Workers Union (CWU) were protesting at job losses which they say will come from modernization of the firm and have rejected a 2.5 per cent pay offer.

Royal Mail, which has been losing business to rivals since the postal market was opened to competition, says the changes are needed for it to stay competitive and vowed to keep delivering mail during the action.

Smaller businesses have felt the biggest impact from the strikes as orders and deliveries have been delayed.

Burslem-based Lorna Bailey Artware depends on Royal Mail to bring in responses to its mailshots.

“Potentially, it could cost us thousands of pounds. When mail shots go out they can turn over GBP 20,000. If it is late, it puts back the manufacturing and painting – all very problematic.

“It puts us in an awkward situation because we can use Parcelforce for larger parcels, but we don’t want to pass extra charges on to the customers.

Toy and book supplier Everything Dinosaur, based in Middlewich, relies heavily on the post for its mail order service.

Owner Mike Walley said the biggest concern was not knowing which division was on strike each day.

Mr Walley has introduced a new service using couriers in an attempt to overcome disruptions but said this is costing the company money.

He added: “We’re using couriers for some of the larger parcels, but it’s costing us money because we have offered it at a discounted rate.

The national strikes have now been called off and Royal Mail and the CWU are expected to reach an agreement by September 4. Royal Mail has pledged to get services back to normal as quickly as possible.

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What price memories?

Posted by | Aug 26, 2007 | |

With prices for printing digital holiday snaps varying from 15c to $1.20, it can be difficult for consumers to know if they’re getting a good deal.
Maryanne Dransfield, New Zealand director of the Photo Marketing Association, said there were “well in excess of 2000” photo kiosks across the country, a result of the growing popularity of digital cameras and photo-capable phones. There was no indication demand would slow, with sales of digital cameras increasing by around 20 per cent a year.
In comparison, fewer than 100 non-digital cameras were sold in May.
Appliance retailers such as Noel Leeming and Harvey Norman have automated in-store photo kiosks, allowing customers to print their own pictures from a disc or memory stick.
Prices at automated kiosks start around 60c, although competition between retailers in the bigger cities can mean prices vary considerably.
Photo labs – which use processor-operated machines – and online services are the cheapest, some charging just 15c for a standard-sized print.
Most kiosks allow customers to crop, enhance and alter photographs before printing, a service not all online stores offer. The technology is similar to the larger mini-labs favoured by specialist photographic stores, so quality should be reasonably high.

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Panalpina Financial Results

Posted by | Aug 25, 2007 | |

The world’s fourth largest air freight and sea freight forwarder, Swiss group Panalpina, continued its strong organic growth in the first six months of 2007, with revenues, earnings and market share all registering impressive growth.

While turnover and profits have increased, Praveen Ojha, Analyst with independent market analysts Datamonitor’s logistics and express research unit, says the bigger positive signs for the future lie in Panalpina’s non-freight forwarding results- the Supply Chain Management (SCM) division. With increasing margins in the SCM business, Panalpina continues to swell its cash-kitty for any potential acquisitions.

After posting strong first quarter results earlier this year, Panalpina extended the good performance throughout the second quarter and, over the first half as a whole, increased both its operating and net profits by over 50 pct.

Net forwarding revenue increased to CHF 4.0 billion, from CHF 3.7 billion a year earlier. The first half net earnings jumped to CHF 108.4 million, up from CHF 69.3 million in 2006, while EBIT increased to CHF 148.3 million, up from CHF 96.6 million a year earlier. Panalpina has also announced plans to launch a share buyback program later this month, and, according to the company, this will not impact plans for further capital expenditure or inorganic growth.

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Bahrain joins GCC study on pan-Gulf postal firm

Posted by | Aug 25, 2007 | |

Bahrain has joined other GCC states in studying the establishment of a pan-Gulf mail transportation company. The company is aimed at streamlining and speeding up mail transportation within the Gulf region.

A preliminary meeting to discuss the project was held in Dubai.

The Bahrain Post was represented by chief of international postal relations Faisal Al Dallal.

The project is in its initial stages and the authorities are currently carrying out a feasibility study, Mr Al Dallal told the GDN.

“This was the second meeting of a special committee of representatives from GCC postal administrations,” he revealed.

“The committee agreed on the framework of the financial and operations model for the proposed company.”

Committee members presented information gathered from several GCC states on the status of transportation of postal mails and couriers, said Mr Al Dallal.

“The proposed company may have to compete with private courier companies,” he noted.

“Being a government organization, it may compete in quality by providing the most cost-effective service.

“Initially, it may launch services within the Gulf, but it would be eventually extended to international destinations.”

Another meeting will be held after four weeks, probably at the GCC Secretariat in Riyadh.

This meeting is expected to be attended by postal directors from all the six GCC states.

A representative from the GCC Secretariat also attended the Dubai meeting.

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UPS expresses interest in Deutsche Post

Posted by | Aug 24, 2007 | |

Rumors are rife that UPS and private-equity firm Apax Partners Worldwide may bid for a stake in Deutsche Post.

The operator’s share value rose on the back of the speculation and 2Q results. “Deutsche Post are boosted by the rumor Apax and UPS might bid 28 euros a share for about 30 per cent in the company,” said Thomas Nagel, a trader at Equinet AG in Frankfurt.

2Q profit rose 13 per cent as the DHL express division increased package volumes in Asia and earned more per shipment in the US.

Net income rose to 285 million euros, from 252 million euros, or 21 cents, a year earlier.

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Adtio Gives DHL an RFID Boost in HK and China

Posted by | Aug 24, 2007 | |

Adtio Group Limited, a leading RFID solutions provider in Asia, announced that it has been awarded a contract by DHL Exel Supply Chain (HK) Limited (DHL) to improve warehouse operations efficiency with its RFID technologies in Hong Kong and China.

Adtio will deliver RFID total solutions, including Adtio Smart-i RFID System (EPC compliant RFID Middleware and EPCIS Server), RFID readers, tags and integration services, to track the movement of case and pallets into and out of the warehouse, and share this information with shippers via EPCnetwork.

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