Sales advance despite weakening economy
Posten interim report January-June 2008
- Net sales totaled SEK 15,595m (15,062)
- Operating earnings totaled SEK 1,165m (1,388)
- A strong financial position put the equity-assets ratio at 39% (36%)
- On June 18, the Swedish parliament adopted the government's proposal to merge Posten with Post Danmark, and on June 12 the Danish parliament approved the merger
- Lars G Nordström was appointed new President and CEO
Message from CEO
Posten's net sales increased 4%, mainly as a result of the acquisition of Tollpost Globe. Posten Logistics experienced organic growth of 9%, while net sales increased 24% including Tollpost. Stralfors' operations in information logistics and graphics reported growth of 11%. However, net sales for Posten Messaging fell again in the second quarter, decreasing a total of SEK 192m, or 2%, during the first half of 2008. It is uncertain how much of a slowdown the economy will undergo and how that will affect the volumes in Posten's core operations. However, we predict the negative trend in volumes will continue, mainly in mail operations as substitution accelerates. We are also encountering intensifying competition from international players in all core operations and across all markets where we are active.
Operating earnings totaled SEK 1,165m, SEK 223m less than for the same period the preceding year. Weaker operating earnings were attributable to lower sales for Posten Messaging and to increased costs of transportation and personnel.
We continue our long-term and goal-oriented work to strengthen the Group's competitiveness. At Posten Messaging, rationalization efforts are underway to reduce the fixed costs in mail delivery. At the same time, we are enhancing our range of services.
In June this year, the logistics operations set up an organization with a sharper geographic focus. The purpose is to offer a broader and more clearly defined Nordic logistics service while improving productivity across all product areas. Stralfors is proceeding with its European expansion, keeping productivity enhancement and streamlining high on the agenda. In June, the Swedish and Danish parliaments voted to approve the merger between Posten and Post Danmark. Now, as the final pieces of the merger are put into place, we are working to develop an action plan. Our goal is to have a well-prepared and primed organization that is ready to realize the identified synergies and to seize upon the business benefits created by the merger.
Lars G Nordström
President and CEO
Please direct any questions to:
Posten Media Relations, phone: +46 (0)8 23 10 10, e-mail: email@example.com
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