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Itella announces loss of €5.9m in 2011

Itella Corporation has announced an operating loss of €5.9m in 2011 compared to an operating profit of €32.4m in 2010. Sales revenues amounted to €1.9bn in 2011, a 3.2% increase compared to €1.84bn in 2010. The company attributed the operating loss to non-recurring items of €36.4m, of which €27m was related to personnel and a cost cutting initiative introduced in August 2011.

Net sales grew across the company, but most significantly at Itella Logistics where net sales grew by 8%, while Itella Information recorded sales growth of 5.4%. Sales growth at Itella Mail Communications was more modest at 0.9%.

Discussing the company's performance, Jukka Alho, President and CEO, said: "Traditional postal operations are showing many positive signs, such as robust growth in Itella's parcel volumes, arising from the growth of online commerce. Itella's operating result grew during the final quarter of the year. The global financial crisis a couple of years ago still reflects the market, however, and our parcel volumes continue to remain below the levels of peak years. Itella will continue to invest heavily in the promotion and development of electronic services. The latest advancement on this front was the banking license, which, among other advantages, enables the development of solutions for the receiving and payment of e-invoices within Itella's online services.

"Itella's profitability weakened and the result was burdened particularly by various non-recurring items regarding for example reduction in the workforce. In addition to that, in Itella Mail Communications the result was negatively affected by a clear reduction in the magazine and letter volumes. All of our business groups are in the process of focusing on their respective core areas of business. During the past few years, the company has been engaged in an active – at times even risky – search for growth. It is now time to review such ventures further and decide which investments show future promise and which ones to abandon," concluded Alho.
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Source: Itella Corporation


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