Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Posts lifts 1H profit 18% by slashing costs

NZ Posts lifts first-half profit by 18 percent by slashing costs faster than sales fall

Feb. 24 (BusinessDesk) – New Zealand Post Group, which plans to eliminate up 2,000 jobs in the next three years and reduce deliveries to just three days a week as volumes plunge, said first-half profit rose 18 percent as it slashed costs faster than revenue declined.

Profit was $71 million in the six months ended Dec 31, from $60 million a year earlier, the state-owned postal service said in statement. Sales fell to $860 million from $872 million, while operating costs dropped 4 percent to $761 million, or declines of $12 million and $32 million respectively.

NZ Post expects its full-year result to be “close to plan,” chief executive Brian Roche said. “We will balance ongoing cost reduction with a strong focus on growing new and profitable revenue and developing new ways to serve customers and meet their changing needs.”

The company is grappling with the continued slide in the volume of letters posted as consumers switch to the internet, email and social media for everything from paying bills to sending birthday greetings and keeping in touch with loved ones. It estimates letter volumes have tumbled 30 percent since 2006.

In the same period, parcel volumes have increased and today Roche said growing its parcels and logistics business “is a top priority.”

NZ Post is preparing to reduce delivery of standard mail to urban households to alternate days in mid-2015 and is trialling different modes of delivery over the next six months, it said. In November, the company said it aims to eliminate between 1,500 and 2,000 jobs in a three-year shake-up, by reducing deliveries, closing Post Shops and trimming costs.

“New Zealand Post will continue to reduce its property footprint, including owning fewer corporate Post Shops in its network of 880 service points, with more services being hosted by local businesses,” Roche said.

The company will pay an interim dividend of $2.5 million, unchanged from a year earlier.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news