ITELLA CORPORATION STOCK EXCHANGE RELEASE JULY 28, 2010, AT 10:00 AM
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."
Itella's full Interim Report (pdf)
Tuija Soanjärvi, CFO, tel. +358 20 45 20907,
NASDAQ OMX Helsinki
FINANCIAL CALENDER 2010
Interim Report for January-September on Wednesday, October 27
PHOTOGRAPS AND LOGOS
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.