Itella Corporation’s results January-March 2008: Increases in wage costs reduce profitability

22.04.2008

Itella Corporation’s results January-March 2008:

Consolidated net sales for January-March totalled EUR 447.4, up by 3.7 per cent. International operations represented 26 per cent of net sales.
Year-on-year, consolidated operating profit decreased by 27.5 per cent, to EUR 33.3 million. EBIT margin dropped to 7.4. Profitability weakened due to the brisk increase in work force expenses resulting from last autumn's collective labour agreements and Easter occurring in March.
Letter distribution volumes remained stable.
Itella Mail Communication acquired DH Tools Oy, a company offering enterprise marketing management services.
Itella Information and Norway Post announced plans to establish a joint venture under the name Itella Information AS. Poland will become the Group's tenth country of operation, Itella Information having agreed on the acquisition of BusinessPoint S.A. in January.
Itella Logistics acquired Kauko Group Oy, specialising in international transport services, and the Swedish company Hansar Logistics AB.

Itella's key figures	Q1/2008	Q1/2007	2007
Net sales, EUR million	447.4	431.5	1 688.3
Operating profit (EBIT), EUR million	33.3	45.9	101.8
EBIT margin	7.4	10.6	6.0
Profit before income tax, EUR million	35.3	48.2	109.5
Return on equity, %	9.7	10.8	11.1
Return on investment, %	13.7	15.1	15.6
Equity ratio, %	64.1	63.1	65.9
Gearing, %	-16.5	-24.6	-36.4
Employees, on average	25 278	24 787	25 623
Investments, EUR million	30.7	16.1	94.2

For further information, please contact:
Jukka Alho, President and CEO, tel. +358 (0)20 451 5600, firstname.lastname@itella.com
Tuija Soanjärvi, CFO, tel. +358 (0)20 45 20907, firstname.lastname@itella.com
www.itella.com/group/english

Appendices
Board of Directors' Report
Consolidated Income Statement and Balance Sheet