In the first half of 2009, Swiss Post generated Group profit of CHF 358 million – 16 percent lower than a year ago. The drop in profit is mainly due to higher wages and the increasing decline in letter volume due to the economic situation. The economic crisis has had a varied effect on the individual units’ contributions to the Group results. Due to the lower prices for letters which came into effect on 1 July 2009, Swiss Post expects additional pressure on profit and significantly lower annual results compared to the previous year.

Between January and June 2009, Swiss Post generated Group profit of CHF 358 million. This is CHF 67 million, or 16 percent less than in the same period of the previous year (CHF 425 million). The main reasons for the decrease are a fall in earnings due to the difficult economic environment, and higher staff cost due to salary increases and increased headcount. In addition, the lower earnings from real estate sales had a noticeable effect on the results. Overall, operating income decreased by CHF 101 million to CHF 4,275 million (previous year: CHF 4,376 million).

Various effects of the crisis

The current economic crisis affects Swiss Post’s individual units differently. The traditional logistics units in particular are experiencing the negative aspects of the current situation, whereas PostFinance and PostBus are growing. While the addressed letter volume has been declining by an average of around 1.5 percent in the past few years - due to substitution –, by the end of June 2009, it was down by 4.8 percent. Thanks to the successful completion of the two-year commissioning phase of the new letter centres, delivery times have returned to their previous high level and savings could be achieved. The operating result of PostMail fell by only CHF 7 million to CHF 127 million. At PostLogistics, the result dropped by CHF 3 million to CHF 15 million because of losses due to the economic situation and increased costs. The unfavourable economy also had a negative effect on the Strategic Customers & Solutions unit, which focuses on markets abroad, contributing significantly to the fall in operating result of CHF 18 million to minus CHF 10 million. Thanks to new accounts and higher sales of non-postal products, the Post Offices & Sales unit was able to compensate for the ongoing decline in letters and parcels handed in at the counter, and at the same time maintain its operating income; however, its result fell by CHF 29 million to minus CHF 67 million due to higher staff cost. PostFinance developed positively and increased its result by CHF 44 million to CHF 198 million, thanks to the continuous inflow of new money. With the operation of several new routes and due to a general rise in demand, PostBus was able to increase its operating income and also lift its result by CHF 11 million to CHF 24 million. Despite the recession, Swiss Post International maintained its sales volume compared to the previous year and generated a result of CHF 29 million (previous year: CHF 16 million ). In the "Other" segment, the lower earnings from the sale of real estate in particular resulted in a fall in operating result by around CHF 65 million to CHF 49 million.

In view of the drop in earnings, which the company will experience as a result of the announced price cuts for letters since 1 July, Swiss Post expects increasing pressure on profit and significantly lower annual results compared to the previous year.

Key figures for the Group

	Unit	Halfyear 2009	Halfyear 2008	2008
Operating income	CHF million	4,275	4,376	8,980
Operating result1	CHF million	365	419	812
As % of operating income	%	8.50%	9.60%	9.00%
Group profit	CHF million	358	425	825
Total assets	CHF million	82,571	62,526	71,603
Equity	CHF million	3,063	2,527	2,857
Investments2	CHF million	147	180	516
Headcount at Swiss Post Group (excluding trainees)	Full-time equivalents	44,537	43,309	44,178
Headcount at Swiss Post  (excluding trainees)	Full-time equivalents	31,114	32,803	32,919
Trainees at Swiss Post Group	Full-time equivalents	1,676	1,572	1,631

¹ Operating result corresponds to operating profit before consideration of financial result and taxes (EBIT).
² Investment in tangible fixed assets, participations & intangible assets

Segment information 30 June 2009

CHF million	Operating income	Operating result	Headcount3
PostMail	1'422	127	16'992
PostLogistics	726	15	5'457
Swiss Post International	522	29	1'278
Strategic Customers & Solutions	325	-10	6'844
Post Offices & Sales	660	-67	6'956
PostFinance	1'040	198	2'973
PostBus1	314	24	1'628
Other2	479	49	2'409
Consolidation	-1'213
Group	4'275	365	44'537

Segment information 30 June 2008

CHF million	Operating income	Operating result	Headcount3
PostMail	1'461	134	17'517
PostLogistics	751	18	5'240
Swiss Post International	525	16	1'264
Strategic Customers & Solutions	337	8	5'545
Post Offices & Sales	656	-38	7'004
PostFinance	1'048	154	2'854
PostBus1	297	13	1'548
Other2	526	114	2'337
Consolidation	-1'225
Group	4'376	419	43'309

Delivery times for letters (as a percentage)

	Half-year 2009	Half-year 2008	2008	2007	2006
A Mail	97.8	96.3	95.9	97.1	98
B Mail	98.1	96.4	95.9	96.7	98.3