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Decreased in the volume of mail item a head aches for Post-NordThursday, 23 February 2012
Swedish-Danish North Post, the Swedish and Danish Post office’s parent company, reported a hefty increase in profits for last year but at the same time it was flagging for a major adjustment to adapt to market developments.
It is the reduction in mail volumes that is posing as a stumbling block to the Post Nords.
The company expects a sharp decline in volumes in the coming years in both Denmark and Sweden.
The proposed conversion includes "significant" investment in production and infrastructure in the letters business, investments that will increase flexibility, efficiency and profitability, according the company. It will also prepare Post North for an IPO or, as the company puts it, "provide preparedness for a possible ownership decisions in this direction."
Profit before tax was Skr 1.7 billion in 2011, compared with Skr1.3 billion the previous year, as CEO Lars Idermark describes as "satisfactory results", given market conditions. Sales fell 5 percent to Skr39.5 billion.
In the financial statement, Post North writes that the transition "will affect many," and that it will lead to "significant restructuring of nonrecurring expenses" in 2012 and 2013.
"Despite an improved performance the underlying profitability is under pressure and need for a shift of the Post Nord's business is big over the next few years. In addition, the development in 2012 is beset with great uncertainty, "writes CEO Idermark in the report.
The Board proposes a reduced dividend to shareholders to Skr368 million, a sharp fall from Skr1 billion the previous year.
By Scancomark.se Team
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