Profits fall at Swiss Post
Swiss Post has seen profits fall, despite a rise in sales, for the first six months of the year. Profit came in at SFr95 million ($55 million), less than half that for the first six months of 1999.
In a statement, the Post Office described the result as “unsatisfactory”.
Turnover, however, rose five per cent to reach SFr2.9 billion. Sales were helped by increased demand for first class post, express mail and payment services.
Swiss Post said profits were hit by the employment of 600 extra staff, as well as the modernisation of 1,600 post offices and the development of its e-commerce unit. It said the benefits of this investment wouldn’t be felt for several years.
Analysts say the recent decision of the Communications Minister, Moritz Leuenberger, to rein in Post Office demands for higher mail charges will also affect profit margins this year.
Swiss Post warned that its figures for the year as a whole would be below the SFr167 million profits reported for 1999.
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