Tag: France

Chirac gets deal to safeguard universal post services

The commission wants to open postal markets to unrestricted competition, forcing E.U. nations to withdraw state support for national postal services.
Proposals put forward by the commission would have forced France to unwind its unlimited guarantee for all liabilities held by La Poste, which makes the company a low-risk borrower. The country’s 17,000 post offices would also have had to share the market with global mail carriers like TNT and Deutsche Post AG (DPW.XE), as well as express carriers like United Parcel Service Inc. (UPS) and FedEx Corp. (FDX).
France was one of the fiercest critics of the reforms, arguing the moves would crush La Poste and threaten services in small towns. Competitors would cherry pick the most profitable businesses, such as city deliveries, and neglect rural regions, it said.
The commission’s current proposal calls for prying opening the E.U. postal market by 2009.
While the E.U. heads of state and government Friday gave general backing to the commission’s plan, they shied away from endorsing the 2009 timeframe and kept open a wide window for France to keep protecting La Poste’s monopoly.
The leaders called for “further liberalization of the postal markets, while ensuring the financing of an efficient universal service.”

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Geodis profits soar by 50%

Europe’s Geodis turned in net profits of EUR 48.4 million last year, up 50% on 2005. Earnings per share rose 48% to EUR 7.80 from EUR 5.25 on revenues up 5.3% to EUR 3.78 billion. The board is recommending increasing the dividend by 11% to EUR 2.45 a share.

The company said it aimed to increase revenue by 40% over the next three years and lift operating margin, currently 2.8%, to around 4%.

It performed better last year in Europe (excluding France), coming close to break-even with an operating loss of just EUR 0.5 million, reflecting recovery in Italy, where operating losses were limited to EUR 3.6 million, and improved UK results.

The company’s international region (Asia, Africa, Mexico) performed well in the second half of the year. Operating profit for the six-month period came to EUR 3.8 million, reflecting increased revenues after a difficult first half.

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Electric vans for French post office

In late 2005, France’s state-run postal service began a trial of eight experimental Cleanova electric vans in an effort to meet a government requirement to reduce pollution.

Not only did the vans work well and prove cheaper to operate than gasoline-powered ones, but the mailmen who drove them reported higher job satisfaction. Now, La Poste is working on a five-year plan to replace the bulk of its 48,000-vehicle fleet with electric cars.

The cars La Poste used were developed by Société de Véhicules Électriques (SVE), and were outfitted with a specially designed lithium-ion battery developed by a joint venture of Milwaukee car-parts maker Johnson Controls Inc. and French battery company Saft Groupe.

SVE has yet to settle on a price for its electric car, and it isn’t clear how much La Poste will have to pay to increase its fleet. But the car will be significantly more expensive than a traditional gasoline-powered vehicle because of the high cost of the lithium-ion battery, which La Poste says would account for about 60% of the unit price. The mail company says it will save on operating expenses because charging the electric car with electricity costs about one-sixth what it would spend to fill up the tank with gasoline.

SVE plans to make only a few cars at first. The French company expects to begin volume production toward year end with the assembly of 1,000 vehicles and, from 2009, gradually ramp up production to about 20,000 a year. That would be a fraction of the two million vehicles sold in France every year, though still more than all the other electric cars ever produced.

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ARCEP and French Postal Operators Form Association

All postal service operators on the French market and holders of licences from France’s telecommunications and postal regulator Arcep formed a postal operators’ association, Syndicat des operateurs postaux (SOP), on December 1. This comes in reaction to deregulation plans by the EU authorities. Members of the new association include the French postal service provider La Poste, DHL-Global Mail France (a subsidiary of the German group Deutsche Telekom), Swiss Post International France (the French subsidiary of the Swiss postal service) as well as Adrexo, Althus, IMX Spring and Stamper’s.

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