Swiss Post announces record profit

Customers had to pay more to send letters, boosting profit Keystone

Swiss Post says it more than doubled net profit in 2004 to a record SFr837 million ($699.6 million).

The state-owned giant reported positive figures across all sectors of the company, adding that it had made inroads into new and highly competitive markets.

“Swiss Post was able to massively increase its profit to SFr837 million compared with SFr366 million for the year before,” the company said in a statement on Thursday.

It said the record profit was down to an increase in the cost of first- and second-class stamps, which brought in SFr200 million, restructuring and reorganisation within the company, plus a reduction in pension and salary costs.

Swiss Post said the excellent result meant that it would be handing over SFr350 million to pension funds, while staff would receive a SFr300 bonus.

The company added that it expected a strong performance in 2005, but cautioned that it was unlikely to match last year’s figures. It also warned that it would be continuing to tighten its belt and restructure.

“[Swiss Post] intends to cut back on its traditional activities, to prepare for a quick liberalisation of the markets and to profit to the maximum from technological developments,” it said.

Scepticism

Unions reacted with some scepticism to the news. Transfair, a public service union, said it was pleased with the financial result but worried about the future.

It added that it would be “incomprehensible” if the Post continued to outsource work, risking job cuts, after such a big profit.

Meanwhile, the Communication Union called on the giant not to make conditions worse for workers after a year that saw industrial relations take a dip.

In November around 200 workers at four sorting offices went on strike over fears of pay cuts. At the heart of the dispute was a plan by Swiss Post to set up independent subsidiaries to carry out some of its operations.

Unions claimed such a move would result in a 20 per cent pay cut for almost 300 staff, breaching an accord reached earlier in the year.

The two sides made peace just before Christmas, with a deal guaranteeing working conditions in subsidiary units.

swissinfo with agencies

Key facts

Profit for 2004: SFr837 million.
Profit for 2003: SFr366 million.
Staff 2004: 42,284.
Staff 2003: 43,416.
Apprentices 2004: 1,556.
Apprentices 2003: 1,413.