Austrian Post Repositions Parcel & Logistics Division in Austria
In a Supervisory Board meeting held on December 12, 2007, the Management Board and Supervisory Board of Austrian Post approved a comprehensive plan to reposition the Parcel & Logistics Division in Austria.
Essentially, the concept encompasses three core measures which will be implemented during the year 2008 to enable an improved market position of the Parcel & Logistics Division.
– Redimensioning (downsizing) of parcel logistics operations, and its partial integration in the letter mail logistics operations, in order to create an even more efficient nationwide delivery network
– New premium product: the 24 hour business parcel (B2B and B2C)
– Growth in the B2B business customer parcels segment – market share of 20pct in 2011
The restructuring measures will lead to the closing of 7 parcel delivery bases, and the transfer of the Parcel Sorting Centre Graz to the existing location in Kalsdorf. The planned reduction in the parcel logistics work force by about 360 employees resulting from lower parcel volumes will be cushioned as much as possible by shifting employees to the Mail Division or by means of a social (redundancy) plan.
“The EBIT has risen continually from EUR 4m in 2002 to a planned level of EUR 160m in 2007. The current package of measures will enable us to continue our path to success. The restructuring measures will ensure that the Group profit for the period in 2008 will only be slightly under the 2007 level, and then rise continually. We are well on track to achieve an expected mid-term EBIT margin of between 7pct and 8pct”, says Anton Wais, Chairman of the Management Board of Austrian Post.
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