Tag: Sweden

President and CEO Erik Olsson commented that Posten is performing well. We have reached operating earnings of SEK 1,442m for the full year, despite costs of SEK 617m for Posten’s restructuring and transition to a new operational structure in the fourth quarter. These will result in annual cost reductions of SEK 300m, fully effective by 2008, thus reinforcing our long-term competitiveness.

The acquisition of Strålfors together with a robust economy and intensified sales efforts have resulted in Posten setting a sales record for 2006. Both Posten’s logistics and direct marketing services have grown by 8 percent each.

The expanding market for information logistics services is a key growth area for Posten. During the year, Strålfors grew by a full 20 percent in this area. Earnings for Strålfors have also been weighed down by structural costs that will strengthen the company’s competitiveness in the face of future challenges. In order to take advantage of the identified synergies, Posten and Strålfors are merging their printing operations in Sweden.

Posten’s end-to-end solutions for the growing distance trade have, together with the upswing in the economy, softened the fall in mail volumes. This has maintained the income level from Messaging, Posten’s largest business area, keeping it the same as last year.

– Net sales totaled SEK 27,823m (25,277)
– Operating earnings totaled SEK 1,442 m (1,281)
– The fourth quarter was weighed down by costs of SEK 617m for Posten’s restructuring activities, which will result in annual cost reductions of SEK 300m
– Net earnings totaled SEK 1,013m (1,478)
– Equity-assets ratio was 33 (33) percent
– Cash flows from operating activities totaled SEK 2,602 m ( 2, 251)
– The Board proposes that SEK 400m (175) be paid out in dividends