An Post today reported its largest ever loss of more than €70 million for its operations in 2002.
The loss includes a restructuring charge of €52.5 million and a pre-tax operating loss of €17.4 million, the group's annual report showed today.
Turnover at the group was up 9.4 per cent to €683.7 million but this was offset by an 11 per cent rise in costs.
An Post Group chairperson Ms Margaret McGinley said the results were cause for "serious concern". Wage costs were identified by the chairperson as the single largest expenditure for the group.
Ms McGinley said an interim increase for domestic and some overseas mail this time last year had only restored the letter tariff to 1991 levels.
The company should find out later this week whether an application for a rise in the price of a domestic stamp from 41 cents to 48 cents will be approved.
"Few businesses would be able to sustain operating margins in such circumstances and given the particularly high inflation rate in Ireland, it is not surprising that the company should now find itself in some difficulty," she said.
Ms McGinley stressed that "further realistic price increases" and cost saving measures like the introduction of delivery boxes were required to see the group earn a profit from its mail business. This sector had a turnover of €427 million in 2002.
Turnover at PostTS, the rebranded Post Office division ,was up by €18.2 million to €125.8 million, with losses falling from €13 million to€1.3 million year on year.