Stock Exchange Release: Itella Interim Report for January-June 2010
28.07.2010
ITELLA CORPORATION STOCK EXCHANGE RELEASE JULY 28, 2010, AT 10:00 AM
January-June 2010
- The Itella Group's net sales in the first half of 2010 totaled EUR 904.6 million (EUR 916.2 million in January-June 2009). International operations accounted for 31% (30%) of net sales. Itella Information and Itella Logistics increased their net sales, while Itella Mail Communication saw its net sales decline.
- Operating profit was EUR 12.1 million (EUR 27.7 million), representing 1.3% (3.0%) of net sales. Financial performance was taxed by restructuring costs of EUR 13.8 million (EUR 6.1 million). Profitability weakened considerably in Itella Mail Communication and slightly in Itella Information. Itella Logistics was able to decrease its loss.
- Mail delivery volumes followed the trend seen in other industrialized countries. The volume of addressed mail decreased by 1% year-on-year. The delivery volumes of newspapers and magazines fell by 2% and 8%, respectively. Parcel delivery volumes dropped by 4%.
- The average personnel reduction compared with the corresponding period in 2009 was 1,050 in Finland and 650 in other countries.
April-June 2010
- The Itella Group recorded net sales of EUR 450.6 million in April-June (EUR 438.6 million).
- Operating profit was EUR -6.3 million (EUR 7.8 million), including EUR 14.5 million (EUR 4.4 million) of restructuring costs.
Jukka Alho, President and CEO:
"Itella's net sales do not yet suggest any clear changes in the economic conditions. Logistics are the most sensitive barometer in this respect; the result for the period indicates that the economic outlook is slowly improving. Recently the market has picked up in international freight and Russian warehouse logistics, for instance.
In Finland we are reaching a situation where the financial recession is leading to accelerated digitization of postal mail. Thus, we will have to adapt to decreasing delivery volumes in the next few years. This naturally involves a need for personnel reductions over a longer period of time.
The profitability of Finnish postal services has been continually declining and is no longer satisfactory. Despite this, regulatory supervision in Finland is further hampering the profitability of postal services. In other countries and other fields of business that face similar problems efforts are being made to improve the operating conditions. This is particularly the case when citizens' core services are at stake. A more challenging operating environment will increase the pressure to reduce personnel, and it will be especially difficult to provide postal services for sparsely populated areas."
APPENDICES
Itella's full Interim Report (pdf)
FURTHER INFORMATION
Tuija Soanjärvi, CFO, tel. +358 20 45 20907,
e-mail: firstname.lastname@itella.com
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.itella.com/financials
FINANCIAL CALENDER 2010
Interim Report for January-September on Wednesday, October 27
PHOTOGRAPS AND LOGOS
www.itella.com/media
Itella Group provides solutions for managing information and product flows. Itella operates in mail communication, information logistics and logistics in northern and central Europe, and in Russia. Net sales in 2009 amounted to EUR 1,820 million. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. More information is available online at www.itella.com/group.
