Norway Post

The operating revenues declined by 3.9 per cent compared to last year. The lower level of growth in the Norwegian and international economy is the main reason for the reduction in revenue. The first quarter operating revenues came to MNOK 6 663 in 2010, MNOK 269 less than in 2009.

Spinnaker’s effect since the start: NOK 1.4 billion
The earnings before non-recurring items and write-downs increased noticeably, mainly due to effects resulting from the Spinnaker profitability programme. Since its start in November 2008, Spinnaker has had a total effect of around NOK 1.4 billion.

”We implemented cost-cutting measures early on and now see that they are helping to strengthen the Group’s ability to compete in the Nordic market,” says Norway Post’s President and CEO Dag Mejdell.

Additional measures will be implemented in the Mail, Logistics and IT segments in order to adapt the costs to the declining level of activity.

First quarter highlights for the three divisions

• The Mail Segment’s first quarter revenues came to MNOK 3 126 in 2010, MNOK 90 less than in 2009. This segment’s earnings (EBIT) amounted to MNOK 308, up from MNOK 119 in the same period last year.
• The Logistics Segment’s total revenues came to MNOK 3 055 in the first quarter of 2010, 4.2 per cent less than in the same period in 2009.  This segment’s first quarter earnings (EBIT) amounted to MNOK 69 in 2010, compared to MNOK 59 in 2009.
• The IT segment’s first quarter revenues came to MNOK 1 282 in 2010, MNOK 96 less than in 2009. This segment’s earnings (EBIT) amounted to MNOK 59, MNOK 9 more than in the same period last year.

New, future-oriented organisation
Norway Post is restructuring its divisions to adapt its organisational structure to the Group’s revised strategy and developments in the market.

”The new, future-oriented organisation strengthens our parcels, goods and logistics solutions. The Mail Division will be revitalised and equipped to face the challenges of a declining letters market,” says Mejdell.

The present Group structure has been the same since 2006. During this period, the Group has grown strongly in the logistics and IT sectors while its mail volumes have declined. At the end of 2009, the Group had three strong corporate legs to stand on, with Logistics accounting for 45 per cent of the revenues, Mail for 38 per cent and IT for 17 per cent.

Two logistics divisions – a stronger mail division
The Group will now have two new logistics divisions and a fresh, stronger mail division. 

• The existing Logistics Division will be divided into two – the Logistics Solutions Division and the Parcels and Goods Division.
• The Distribution Network Division and Mail Division will be merged to form a new Mail Division.

When the new Group structure is implemented in June, Pål Amundsen will become the Executive Vice President of the Logistics Solutions Division.  He is currently the marketing director of the old Logistics Division. Arne Bjørndahl will become the Executive Vice President of the Parcels and Goods Division, while Tore K. Nilsen will become the Executive Vice President of the new Mail Division.

Download the entire interim report and President and CEO of Norway Post’s review of the results here