ITELLA CORPORATION STOCK EXCHANGE RELEASE October 26, 2011, AT 10:00 A.M.
Jukka Alho, President and CEO:
- The concrete steps aiming to adapt Itella’s operations to the changes affecting its business environment began in the early autumn. August saw us announcing the need to boost our efficiency with EUR 100 million. In relation to this, we commenced personnel adaptation measures concerning a total of more than 900 man-years. The purpose of the increase in efficiency is to ensure that we will continue to maintain an adequate level of service nationally.
The realization of these plans has run parallel to the increasingly strong signs present in the entire European economy of a probable new recession. Meanwhile, factors such as a value added tax to be levied on the print media – which could also have a considerable impact on jobs at Itella – remain as part of the planning.
In terms of Itella’s business operations, the most positive trend is evident in Logistics, the operative business of which was profitable during the third quarter. Particular improvement is also evident in both domestic and Russian warehouse fill rates and profitability. The central aspects in the Information business area are the integration of operations and the related growth outlook following the OpusCapita acquistion in June.
Regarding domestic postal services, development has remained weak, with the exception of the domestic parcel business. We are in the midst of a significant structural change concerning postal operations with a global reach, and this is occurring simultaneously in most developed countries. In Finland, the decline in the volumes of the print media has been considerable.
It is becoming increasingly clear and unavoidable that we are in a situation where citizens find changes to the accustomed service infrastructure unwelcome but, on the other hand, the service is not considered crucial enough for there to be a willingness to pay for its full costs. From a broader perspective, the state of society at large seems similar: five-day postal delivery, for example, is considered important, but not important enough to prompt a great amount of eagerness to direct already scarce tax revenue to it. This creates a challenge; tackling it requires vision and courage. I believe that in the next few years we will see the beginning of a renewed Europe-wide dialog in which the demand for traditional postal services will be reconciled with the other models of solution offered by the information society. When the time comes, we must decide on the level of service that must truly be available everywhere – even in places where increased competition does not generate adequate services.
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Sari Helander, CFO, tel. +358 (0)20 4520 907, firstname.lastname@example.org
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Financial Statements Bulletin 2011 to be released on February 17, 2012
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Itella Group provides solutions for managing information and product flows. Itella operates in the fields of mail Communications, information logistics, and logistics in Europe and Russia. Net sales in 2010 amounted to EUR 1,842 million. The number of staff is about 28,000. 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.