Romanian Post losses narrow to EUR 4.3 mln in 2011

The state-owned Romanian Post diminished its losses by 85 percent last year, to some EUR 4.3 million. Its planned budget included a gross profit for the year, but the Post only managed to become profitable in the second half of the year, when its gross profit was of EUR 3.7 million. The Romanian Post, which should be soon privatized, ended 2010 with a loss of EUR 28 million. The Post's gross profit in the last month of 2011 was of EUR 1.2 million, while the first month of 2012 ended with an even higher gross profit, of EUR 1.4 million. The drop in loss last year was due to cost reduction measures, an increase in revenues and a more diversified portfolio of products and services, along with the reorganization of the Post's territorial network. The company has over 5,500 units across Romania and handles 11 million parcels every week. The Romanian state plans to remain a majority shareholder in the Post, but sell a minority package to a strategic investor, through a share capital increase. The company will lay off at least 600 people by the end of March and will close down a further 135 units by end-April, as agreed with the International Monetary Fund during the last round of negotiations this year. The Romanian Post, which has 35,000 employees, is 75 percent controlled by the Communications Ministry. Fondul Proprietatea investment fund owns 25 percent of the shares. editor@romania-insider.com