Tag: Norway Post

The Norwegian Postal Service (Posten) will cut its workforce by 1600 man-years next year. Around 50 per cent of all the letter and parcel terminals will be closed down. Many of those who will become redundant have more than 25 years of service with the postal service, and will have small chances for finding new jobs.

Norway Post’s earnings before taxes for the first nine months of 2004 were NOK 693 million, up NOK 632 million compared with the same period last year. The improvement is a result of both revenue growth and cost savings. This is the best result per third quarter since the company’s establishment in 1996. Profitability is also good with a 19.1 per cent return on capital employed.
”The improvement continues in the third quarter, showing that we have succeeded in improving profitability and developing competitive products and services. When, in addition, the return on capital employed is good, we are pleased to be able to say that profitability is at a satisfactory level,” says Norway Post’s Chief Executive, Kaare Frydenberg.

Norway Post supports the Ministry of Transport and Communications’ proposal to open up for full competition in the postal market from 1 January 2007, provided that Norway Post is given the opportunity to compete on the same terms as other players in the market. This means that Norway Post must be free to fix its prices. Uniform postage rates can only be maintained if the Norwegian state is willing to pay the additional costs.

Norway Post Group’s earnings before taxes for the first six months of 2004 were NOK 450 million, an improvement of NOK 449 million compared with the same period last year. The improvement is the result of growth in revenues and of cost savings. Norway Post, in other words, meets its owner’s requirements for return on investments. At the same time, the delivery quality is higher than ever. “The results show that we have succeeded in improving profitability and developing competitive products and services. Thanks to hard work on service improvements and streamlining, Norway Post is on schedule when it comes to facing full competition in the postal market from 1 January 2007,” says Norway Post’s Chief Executive Kaare Frydenberg.