NZ Post delivers improvement

For the six months ended December the state-owned business made a net profit of $22.4 million, up from $21.1 million previously.

Chairman Ross Armstrong says the result was ahead of expectations and reaffirmed the company's focus on creating value through its growth strategies.

"This is a very good result and is a complete turnaround from a deficit of $3.8 million for the transitional quarter to June 2000."

CEO Elmar Toime says the improved profit reflected the company's focus on efficiency in an environment of lower mail volumes, and the ongoing pursuit of global business opportunities.

Operating revenue of $520.1 million was up 8% on the same period last year but was behind expectations.

Revenue growth came mainly from business activities outside New Zealand, including the acquisition last year of an Australian courier company and continued growth from New Zealand Post's international subsidiary through offshore consultancy work and increased sales of postal sorting equipment in Europe.

Late last year listed postal company National Mail (NZSE: NML) announced it was getting out of the postal business after suffering continuing trading losses.

The business had failed to win business against the well-entrenched NZ Post.

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