Growth and strong earnings

With an even greater customer focus in Posten's new operational structure, and the momentum of the strong economy, we have had a strong start in 2007. Net sales increased by 17 percent, totaling SEK 7,704m (6,559). Operating earnings improved by 30 percent, totaling SEK 843m (646), with a productivity improvement of four percent.
 
We are reporting very strong growth in our logistics business. Production volumes increased by a full 10 percent during the first quarter. We have succeeded in handling the increased flows of goods with our existing capacity, which is evident in the positive operating earnings.
 
There is tough competition on the Nordic market for logistics services. Therefore, with our new specialized operational structure, we plan to continue developing competitive Nordic logistics services. One part of this ambition is our plan to increase the number of parcel collection points in Norway this spring. This will improve our service offer within the expansive distance trading sector.
 
The messaging business is continuing to show stable development, despite a slight downward trend for mail volumes. Net sales are increasing as a result of robust growth in the direct mail sector and increasing distance trading. This means that we are distributing mailings with higher weights and postage, which compensates the fall in income from regular mail.
 
Stralfors is a Nordic leader in information logistics, where the senders and receivers' needs for choice and flexibility are a part of the core business. Thanks to both organic growth and additional volumes from Posten, Stralfors increased its sales by 26 percent. Stralfors is also showing upward growth in operating earnings.
 
On March 15 the Swedish Government submitted to the parliament a proposition regarding the state's obligation to provide essential financial transaction services. The government's proposal means that, as of 2009, society's need for essential financial transaction services may be procured by the Swedish Post and Telecoms Agency in rural areas where such services are not commercially viable. If the parliament accepts the proposition, the payment services now handled through the Cashier Service will be provided by other companies as of January 1, 2009. The parliament will declare its decision in June. This will allow us the necessary time to prepare for the change. It will also provide us with the ability to focus on our core business and further develop our customer relations.
 
With a foundation in world-class quality, effective production, and broad customer service offer, we will continue to push Posten towards becoming a world-class company in communication and logistics.
 
Erik Olsson
President and CEO
 
The entire report can be downloaded via the link below
 
For more information:
Swedish Post's Media Relations, phone: 08-23 10 10, e-mail: press@posten.se
 
Posten connects people and organizations around the world by delivering mail promptly, reliably and cost-effectively. We drive value creation by combining conventional postal services and convenient electronic solutions, and integrating these services into customer businesses. With over 4,000 retail service outlets, we provide daily service to 4.5 million homes and 900,000 businesses in Sweden. Every day we handle close to 20 million pieces of mail. With sales of over SEK 25 billion and roughly 30,000 employees, the group is one of the largest in Sweden. The group's parent, Posten AB (publ), is wholly owned by the Swedish Government. For more information, please visit our website at www.posten.se