Posten Norge to implement cost-saving measures to improve earnings

LinkedIn +

Left: Tone Wille, group CEO of Posten Norge

Norway’s national postal operator Posten Norge has reported third quarter (Q3) earnings before interest and taxes (EBIT) of Nkr157m (US$19.2m), a decline of Nkr2m (US$244,000) when compared with the same quarter the year before.

The post has said that it currently faces challenging market conditions with a progressive decline in mail volumes and a weak logistics market. As such, Posten Norge reported Q3 operating revenues of Nkr5.9bn (US$720m), a decrease of 1.8% when compared with Q3 in 2015.

For the first nine months of the year the post achieved operating revenues of Nkr18.3bn (US$2.2bn), which is on par with 2015. So far this year EBIT has been Nkr378m (US$46.2m), a decline of Nkr94m (US$11.5m) compared with the same period last year.

Tone Wille, group CEO of Posten Norge, said, “The group is now experiencing a strong decline in mail volumes. We have covered much of the decline in revenue with major cost-saving measures in 2016, but we will need to implement further measures to adapt to developments.

“Significant cost-saving measures have been implemented to adapt operations to the weaker market. We believe that many of the measures now taken will have a positive effect on the group’s operating result. To strengthen competitiveness in the long term, we are making a significant investment in a new logistics network with 18 terminals in Norway.”

In the first nine months of the year, addressed mail volumes fell by 11.7% in Norway, while the annual decline in recent years has been between 5% and 8%.

The logistics segment had an EBIT of Nkr53m (US$6.5m) in Q3, Nkr35m (US$4.3m) lower than the same quarter last year. For the year so far, EBIT for the logistics division has been Nkr31m (US$3.8m), a decline of Nkr84m (US$10.3m) compared with the same period last year.

November 2, 2016

Share this story:

About Author

, editor-in-chief

Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

Comments are closed.