An Post has reported a loss of €6.7 million for 2001, compared to a profit in 2000 of €9.8 million.
The operating loss is the first reported by the group since 1991.
The company’s turnover rose nine per cent to €625 million but total operating costs rose 12 per cent for the same period to €631.6 million.
The company said a combined effect of the growth in costs and the absence of price increases was mainly responsible for the losses.
It blamed a delay in securing an increase in the basic postal rate which it says was at 1990 levels until April of this year.
An Post chairman Mr Stephen O’Connor said: "No business can sustain a position where its costs exceed its revenues particularly when the outlook, without remedial action, is for a continuation of this trend and a widening of the gap between costs and revenues."
Mr O’Connor said that a 13.4 per cent rise in staff and postmasters’ costs - which account for 70 per cent of group costs and which were fuelled by pay increases under the PPF - was mainly responsible for the cost growth.
The company said obligations under the PPF will cost the Group €80 million when fully implemented.
A recovery plan, to restore the Group to profit by the end of 2004, includes the achievement of savings, the shedding of 1,140 jobs and the introduction of new work practices, the company said. An post also envisages the spending of €21 million on restructuring in 2002 and €32 million in 2003.
The annual report shows that revenues in Letter Post, the mails business division, increased by 8.6 per cent to €399 million. Revenues in the Post Offices division grew by 2.3 per cent to €107.6 million while the parcels and courier distribution division SDS increased its turnover by 4.5 per cent to €78 million.
