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26/11/2001
Consignia’s pre-tax losses climb to £100 million
Consignia has announced a half-year operating loss of £100 million before tax and exceptional items.
This compares to a loss of £20 million for the same period a year ago, and after accounting for exceptional items, the post-tax loss for the half-year is £281 million, compared with a £113 million loss for the previous half year.
Sales in the May to October period rose, but profit from this increased turnover was offset by expenditure on technology, redundancy payments and the escalating wages.
Exceptional costs noted by Consignia related to the impairment of the loss-making parcels operations, together with £20 million from redundancy costs.
Consignia Chairman, Neville Bain, said the figures “underlined the urgency” behind the company's move to seek savings of £1.2 billion by April 2003, equivalent to a 15 per cent reduction in costs.
He said: "Turnover in our core mails and parcels markets is still increasing but the rate of sales growth at 2.7 per cent is just a third of the 7.7 per cent increase in turnover at the previous half year, amid signs of a slowdown in the economy and pressure on margins".
He added that with a potential economic downturn in prospect, making any profit by year-end would be challenging.
Follows a decade of losses Consignia is to make structural changes in Parcelforce Worldwide in a bid to make the division profitable. However, current proposals, including making delivery drivers self-employed, are likely to be fiercely opposed by the Communication Workers Union. (SP)
This compares to a loss of £20 million for the same period a year ago, and after accounting for exceptional items, the post-tax loss for the half-year is £281 million, compared with a £113 million loss for the previous half year.
Sales in the May to October period rose, but profit from this increased turnover was offset by expenditure on technology, redundancy payments and the escalating wages.
Exceptional costs noted by Consignia related to the impairment of the loss-making parcels operations, together with £20 million from redundancy costs.
Consignia Chairman, Neville Bain, said the figures “underlined the urgency” behind the company's move to seek savings of £1.2 billion by April 2003, equivalent to a 15 per cent reduction in costs.
He said: "Turnover in our core mails and parcels markets is still increasing but the rate of sales growth at 2.7 per cent is just a third of the 7.7 per cent increase in turnover at the previous half year, amid signs of a slowdown in the economy and pressure on margins".
He added that with a potential economic downturn in prospect, making any profit by year-end would be challenging.
Follows a decade of losses Consignia is to make structural changes in Parcelforce Worldwide in a bid to make the division profitable. However, current proposals, including making delivery drivers self-employed, are likely to be fiercely opposed by the Communication Workers Union. (SP)
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BSkyB have reported a 23 per cent rise in operating profits for their first quarter, but admit that subscriber numbers are lower than predicted. The company's losses have diminished after operating profits for the three months ended September came in at £45 million.
11 October 2001
Motorola cuts a further 7,000 jobs
Mobile phone maker Motorola is set to axe a further 7,000 jobs worldwide bringing the company’s total job cuts to 39,000 since the start of the year. Motorola chief Robert Growney revealed that around 4,000 of the latest losses were associated with sold businesses, with a further 3,000 earmarked for loss through cuts and attrition.
Motorola cuts a further 7,000 jobs
Mobile phone maker Motorola is set to axe a further 7,000 jobs worldwide bringing the company’s total job cuts to 39,000 since the start of the year. Motorola chief Robert Growney revealed that around 4,000 of the latest losses were associated with sold businesses, with a further 3,000 earmarked for loss through cuts and attrition.
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Ulster Bank announces healthy profit rise
The Ulster Bank has announced a 24 per cent increase in profits of £119 million. The Bank’s overall income increased by 12 per cent to £255 million, while costs increased by 5 per cent to £126 million. Overall, the Royal Bank of Scotland Group, posted interim six-month profit figures that were up 37 per cent to £2,751 million.
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Renewed redundancy fears surface at RTE
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