An Post makes loss despite slight rise in operating profit

An Post's operating profit for 2010 rose to €5.8m, compared to €5.7m the previous year, results released today have revealed.

An exceptional provision of €20m for Voluntary Severance/Voluntary Early Retirement costs of €20m, together with an FRS 17 pension fund charge of €3.9m and a €6.6m cost arising from the wind-down of Postbank combined to produce a Group loss after tax of €24.7m, however.

A reduction of €26m (3.5%) in core An Post company operating costs to €740.4m was achieved mainly through reducing the core FTE (full-time equivalent) numbers by 331. This is in addition to an FTE reduction of 402 the previous year.

Group turnover of €805m just exceeded that of 2009 (€804m). Mail income contributed €552.3m to turnover, a reduction of €13.3m (2.4%) on 2009.

“Significant cost savings were achieved in relation to pay and non-pay costs,” said company chairman John Fitzgerald.

“Capital expenditure of €47m was invested in areas critical to the Company’s future success such as parcel and packet services and new retail products, all funded from An Post’s own cash resources.

“An Post will continue to invest in the foundations of future business whilst adapting to the commercial realities which continue to unfold for Ireland and for the global postal sector.”