Tag: Europe

GAO looks into USPS realignment plan

Posted by | Jul 30, 2007 | |

The Government Accountability Office (GAO) has found that the United States Postal Service needs to improve the quality of public notices and engagement, and increase transparency in decision making.

Major changes within the mailing industry have brought on the need for the USPS to reduce costs and increase efficiency. In light of this, the GAO conducted the study. It found that the USPS has made some positive moves, developing several initiatives to achieve its overall goal of reducing costs while at the same time maintaining quality of service.

To address current trends and other major changes affecting its processing network, the USPS developed a Transformation Plan in 2002 that outlined its vision for the future. In the USPS’ Strategic Transformation Plan Update 2006-2010, the USPS stated its commitment to removing USD 1 billion from its cost base each year. These plans describe how the USPS intends to reduce costs and increase efficiency by making changes to its mail processing network.

The USPS has four major initiatives in progress, according to GAO. The first is area mail processing consolidations to increase efficiency and use of existing automation by consolidating mail processing operations into facilities with excess capacity. Next, the USPS wants to provide essential infrastructure for a more efficient processing network. Thirdly, the USPS wants to increase efficiency by automating the sorting of flat mail, such as large envelopes and catalogs. And finally, the USPS hopes to improve its transportation network flexibility and efficiency.

In response to GAO’s draft report, the USPS agreed with the GAO’s findings and recommendations and plans to take steps to improve its communication and transparency.

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DHL Romania: Profit margin remains at 10 pct this year

Posted by | Jul 30, 2007 | |

DHL has posted a turnover increase of 30 pct for international and domestic express services for the first half of this year against the same time in 2006.

“The highest percentage growth was registered on the segment of domestic deliveries, where volumes doubled compared with last year. Our plans for this year are to continue investing in our own distribution network, with examples in this regard being the enlargement of the car fleet by another 120 vehicles, the increase in the number of offices throughout the country by 20 pct and the increase in the number of employees by more than 10 pct ,” said Bogdan Obretin, commercial manager of DHL International Romania.

The positive results registered in the first six months were primarily due to the launch of new products, to infrastructure investments conducted by the company, to the development of customized solutions for the main industries and the expansion of the company’s national distribution network.

Obretin believes that the current growth rate of DHL in Romania will continue above the targets set for 2007, which would be an approximately 30 pct turnover growth rate against 2006, on the international and domestic express services segment.

According to its own estimates, DHL accounts for 40 pct of the international express delivery market. The company’s main clients are from the banking sector, the automotive industry, the textile industry and the consumer goods industry.

DHL operates a fleet of over 230 vehicles in Romania, as well as its own network of mailing and service centers in more than 23 cities in the country. DHL also intends to buy around 120 vehicles this year.

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TNT plans aggressive UK expansion

Posted by | Jul 30, 2007 | |

TNT, the Dutch mail group, is planning a further aggressive expansion in the UK and elsewhere in Europe in a new drive to offset its declining postal business at home.

Executives said in Amsterdam that the company was raising its forecast for volume growth in its European mail networks (EMN) division – mainly Britain and Germany – to between 30 pct and 35 pct this year from 25 pct and its operating margin to 17.5 pct from 17 pct. Volume growth was 37 pct in the second quarter.

TNT, which has capitalized on the running series of strikes by postal workers at Royal Mail, said organic growth in EMN was up 21.3 pct in the first half, driven overwhelmingly by its UK business. It has started up a new parcels business in Britain. But mail volumes in Holland declined by 3.5 pct in the second quarter.

The former Dutch monopoly, one of Royal Mail’s biggest new rivals, has already indicated that it plans to develop a full-scale network in Britain rather than use that of its UK rival to deliver mail. Peter Bakker, chief executive, said today the group’s new strategy would be disclosed in December.

Giving an upbeat outlook for the full year, Mr Bakker said operating income fell 2 pct in the second quarter to EUR 330 m (GBP 223 m) because of one-off costs but half-year sales were up 9.6pct at EUR 5.4 bn and profits up 2.6 pct at EUR 681m. TNT is raising the interim dividend by 15 pct to EUR 0.30 and initiating a further EUR 500m share buy-back.

Mr Bakker made plain that TNT is worried by the delayed date – 2011 rather than 2009 – for the introduction of full-scale liberalization of EU postal markets and the impact of this in Germany which is due to bring in full competition for Deutsche Post next year. Britain’s market has been open to competition since 2006 and TNT is active in eight of the 27 domestic European markets.

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Malta privatizes postal company

Posted by | Jul 30, 2007 | |

The Maltese government said on Monday it was privatizing Maltapost, the Maltese postal company, transferring the majority shareholding to Lombard Bank Malta and floating 40 percent of the shares on the Malta Stock Exchange.

Public Investments Minister Austin Gatt said that the bank, which already has a 35 percent stake, will buy a further 25 per cent stake for 2.4 million euros. The remaining government shareholding will then be floated.

Maltapost currently enjoys a monopoly in addressed mail items of under 50 grams and is the biggest operator in the delivery of heavier postal articles. It has post offices all over Malta.

Lombard Malta is Malta’s third largest bank but accounts for only a tiny fraction of Maltese banking business with just four branch offices.

The Maltese banking sector is dominated by HSBC Malta and Bank of Valletta, but a Portuguese bank, the Banif group, recently announced plans to involve itself heavily in Maltese retail banking.

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TNT profit from continuing operations up 12.0 pct – 10.0 pct increase in group revenues

Posted by | Jul 30, 2007 | |

Group revenues increased by 10.0 pct in the second quarter to reach EUR 2,689 million. Operating income of EUR 330 million was slightly (-2.1pct) below last year’s Q2 mainly explained by some significant one-off items in last year’s numbers.

The profit attributable to shareholders was EUR 244 million, an increase over last year of 16.7 pct.

Strong revenue growth in Express (+14.1 pct) propelled the Group’s revenue increase. Our growth in international volumes remained strong at a solid double digit percentage, whilst domestic volumes developed slightly better than the market in general, at low single digit.

The integration of the Express acquisitions made good progress, with a marked service quality upgrade in India, the launch of a new truck fleet in China and better than expected results in Brazil. The operating margin of Express remained solid at 10.1pct, excluding the effect of acquisitions.

The trend in Dutch addressed mail volumes was ‘as expected’ (-3.5pct, day-count adjusted), with a favourable price/mix effect reducing the impact on revenues. Revenue growth in EMN was 33.3pct (37.0 pct for the half year). The operating margin decreased compared with last year in Mail overall, affected by one-off elements in Q2 2006 and higher start-up costs in EMN.

The 2007 interim dividend is set at 30 cents (2006: 26 cents), up 15.4 pct.

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