Strengthened Posten grows with improved profitability
- Net sales increased by 7% to total SEK 29,902m (27,823)
- Operating earnings improved by 38% to total SEK 1,995m (1,442)
- Net earnings increased 54% totaling SEK 1,564m (1,013)
- The Board proposes that SEK 625m (400) be paid out in dividends
- On February 4, 2008, Posten entered into an agreement to acquire DSV's 50% share in Tollpost Globe
President and CEO Erik Olsson comments:
Posten has continued to deliver strong financial results throughout 2007. Operatingearnings improved by 38% to total almost SEK 2 billion. These are the best earningsfrom the core business in Posten's 371-year history. At the same time, sales increased by
7%, totaling approximately SEK 30 billion. This shows that we have succeeded, alreadyduring the first year of our new operational structure, in carrying out our focusedefforts to reduce costs and increase income by clearer specialization and increasedcustomer focus.
The strong 10% growth of Posten Logistics is solid proof that we have been successfulin standing up to increasingly tough competition to strengthen our position on themarket. With additional acquisitions in Finland and the establishment of the distributionnetwork MyPack in Norway, Posten Logistics has created the conditions for a moreunified logistics concept on the Finnish market and broadened its offer for distancetrading, and has increased its total capacity on the growing Nordic logistics market.
By successfully integrating Posten's printing operations and winning importantdeals, Stralfors has grown by a full 31% within information logistics. At the sametime, Stralfors has both streamlined the business with divestments of non-core businesses,and has created new growth opportunities, especially for Graphic Solutionsaimed toward the pharmaceutical industry.
It is great news that Posten Messaging is able to encounter challenges fromincreased competition and substitution, which results in stagnating letter volumes.Continued development of services and ongoing rationalizations create the conditionsfor us to continue strengthening our competitiveness while living up to our universalservice obligation. A growth area for both Posten Messaging and Posten Logistics isthe growing distance trade. During the year, our cooperation with distance tradecompanies has grown stronger, and several important agreements have been made.
We are happy to report even more good news. Posten's employees are becomingincreasingly healthy. In 2007, sickness absenteeism fell from 7.8 to 6.5%. Thisdevelopment is mainly positive for our employees, but it also means lower costs forPosten of approximately SEK 100m annually.
Since breaking the negative trend in 2003 concerning the public's attitude toPosten, the curve has been steadily climbing. During 2007, this became evenclearer, something not only apparent in our own measurements, but also in thenewly presented study from the Swedish Quality Index (SKI). I am convinced that thefantastic accessibility that exists in our service network is partly behind the improvement.
The decision about the Cashier Service has also reduced the uncertainty andfurther clearified Posten's mission. Furthermore, I am convinced that, amongst theever-more visible competition, Posten is perceived as the most trustworthy playerwith good service and world-class quality.
To summarize, Posten has developed very positively in 2007. This meansthat we are prepared for the projected slowdown in general economic growth, andalso to responsibly manage the closure of the Cashier Service. At the same time,we will be in an excellent position to create future growth and strong results in ourcore operations.
For further information please contact:
Posten Media Relations Tel: 08-23 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 state. For more information, please visit our website at www.posten.se