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

 

Development: Screen Precinct Earmarked For Hobsonville Point

Auckland Council’s Auckland Development Committee has today passed a recommendation to create a screen precinct on council-owned land at Hobsonville Point. More>>

ALSO:

Scoop Business: NZ Business Confidence Plummets To Lowest Level Since GFC

New Zealands business confidence plunged to the lowest level in three years in the second quarter as companies became pessimistic about profitability expectations. More>>

ALSO:

Oceans: NZ Jumps Into International Shark Agreement

New Zealand has boosted the protection of sharks by signing the Memorandum of Understanding on the Conservation of Migratory Sharks. More>>

ALSO:

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news