Positive growth in e-commerce, but sharp reductions in mail volumes and tough competition in the logistics market continue. Further cost-saving programs initiated.
Total mail volumes for the Group declined by 4% year-on-year: 6% in Denmark and 3% in Sweden. During the quarter, mail volumes were boosted by mailings in connection with personal health cards in Denmark and Sweden’s general election.
The corresponding outcome for the year to date is a decline of 4% for the Group, whereof 10% in Denmark and 3% in Sweden.
Operating income for the Group improved during the quarter, to SEK 345m (242), as a result of actions taken. However, the level of profitability remains unsatisfactory and, as announced earlier, further restructuring measures will be necessary.
An enhanced cost-saving program with approximately SEK 500 million in annual savings is being initiated, which will reduce the number of employees by 700-800 in administration and other support functions.
The implementation of the program will start during the fourth quarter 2014, when the restructuring costs will be determined and the necessary provision made. In addition, we will be focusing on verifying further measures, mainly within production, to strengthen our long-term competitiveness. Our work on customized services is making good progress.
Within our strategic development of the logistics business, we have seen further successes for our concept. During the quarter, we signed agreements with for example CDON on coordination of their warehousing and distribution operations, and with Stadium in third-party logistics (TPL). In the heavy logistics sector, we signed an agreement with Spendrups.
Source: Post Nord
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