On course toward a historic merger
- On April 1, the majority shareholders in Posten and Post Danmark signed
a letter of intent to merge Posten AB and Post Danmark A/S
- Net sales totaled SEK 7,738m (7,704).
- Operating earnings totaled SEK 694m (843).
- Net earnings totaled SEK 533m (614).
Message from the CEO
Posten's sales in the first quarter advanced slightly as a result of acquisitions completed mainly in the logistics business. Sales as well as profits were negatively affected by the shorter first quarter, with two fewer work days than in the first quarter the preceding year. Yet consolidated operating earnings of SEK 694m reflected one of the strongest quarters ever.
With sales of SEK 4.3 billion, the messaging business is essential for Posten. Posten Messaging's sales declined as a result of fewer work days in the quarter. At the same time, operations are encountering challenges in the form of intensifying competition, more substitution, and a higher general level of costs, and operating earnings declined. Thanks to focused efforts to continually streamline operations, the business reported an operating margin close to 11%.
Posten Logistics continues to grow profitably. Acquisitions completed in Norway and Finland accounted for about half of the sales growth. The operations are focused on creating a Nordic structure for heightened customer benefits, increased efficiency, and specialization on the Nordic market with the goal of bolstering Posten Logistics' position and future competitive strength.
Of the core businesses, Stralfors delivered the strongest relative improvement in earnings. Stralfors continues to grow briskly in information logistics. Several key orders were secured from major corporations with a broad customer base in the Nordic countries. Keeping focused on productivity improvements and streamlining operations will further boost profitability in the business. Stralfors' European platform will give rise to new, interesting business opportunities in the group formed by the merger with Post Danmarkas the European postal market is deregulated.
Remaining in the future a competitive business partner for companies that need deliveries to, from, and within the Nordic region demands enhanced market presence and a broader service offer. The letter of intent that the majority shareholders in Posten and Post Danmark signed to merge Posten and Post Danmark is thus a logical and strategically important decision. With a larger home market and a broader range of services, the merged group will become a more appealing partner for companies in the Nordic market. Paired with the identified cost savings through synergy, this will create a more competitive group, able to continue to deliver postal services that meet the high expectations of the Swedish and Danish peopleinto the future.
President and CEO
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Posten connects people and organizations around the world by delivering mail promptly, reliably and cost-effectively. We drive value creation by combining conventional postal services and convenient electronic solutions, and integrating these services into customer businesses. With over 4,000 retail service outlets, we provide daily service to 4.5 million homes and 900,000 businesses in Sweden. Every day we handle close to 20 million pieces of mail. With sales of nearly SEK 30 billion and roughly 30,000 employees, the group is one of the largest in Sweden. The group's parent, Posten AB (publ), is wholly owned by the Swedish Government. For more information, please visit our website at www.posten.se