$35.6 million loss for NZ Post
Earthquakes and write-offs are the big reasons for the loss.
New Zealand Post has made a loss of $35.6 million over the last year.
Earlier this year the postal services group flagged it wasn’t expecting to meet its targeted $60.8 million net profit due to the earthquake and weak trading conditions.
Financial results released this morning reveal the Canterbury earthquakes had cost the company $29.1 million in the year to June 30.
Last year the group was $1.3 million in profit.
Chief executive Brian Roche said the $87.1 million surge in bad debts in its subsidiary Kiwibank was a factor in the disappointing result. Kiwibank's 54% net profit slump to $24.6 million, revealed yesterday, was largely based on its exposure to the residential property market and a large uninsured loss following the collapse of Western Pacific Insurance last year.
So had the $35 million write-down following divestment of the group’s Australian holdings, Parcel Direct Group.
Major restructuring – in response to declining mail volumes -- had cost the group $12.3 million.
Mr Roche says he’s confident the group will return to a positive net profit this financial year as plans to address the erosion of its traditional postal service were implemented.
A sustainability plan for the postal network will be put to the board this financial year, he says.
Georgina Bond
Fri, 26 Aug 2011
Fri, 26 Aug 2011
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$35.6 million loss for NZ Post
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