Q1 2010
GROUP
- Operating income € 251 million (€ 163 million in Q1 2009); quarter benefited from four extra working days
- Profit attributable to shareholders € 143 million (€ 76 million in Q1 2009)
- Net debt stable versus year-end 2009
- Vision 2015 implementation as per AGM announcement progressing
EXPRESS
- Development of Express volumes continues to improve
- Negative year-on-year yield development shows early signs of stabilisation
- Underlying* operating income € 59 million (€ 23 million in Q1 2009)
MAIL
- Addressed mail volumes in the Netherlands declined by 9.7% (corrected for working days and one-off mailings)
- Good performance improvement Emerging Mail & Parcels
- Underlying* operating income € 159 million (€ 149 million in Q1 2009)
SUMMARY OUTLOOK 2010
TNT sees a modest improvement in the economy. Express volumes, revenues and results are expected to be well above 2009 levels, though could be tempered by continuing yield pressure and cost inflation. Mail volumes and results are expected to be below 2009 levels. TNT continues to focus on costs and cash.
CEO Peter Bakker comments: ‘As noted in our 8 April AGM trading update, Q1 2010 continued to show a positive trend. Reported operating income from both divisions was up versus the prior year. We have every reason to be satisfied with the results in all parts of our business. The profit recovery testifies to the hard work of TNT’s employees around the world, squeezing the cost base and helping the company navigate through the 2008/09 economic crisis. However, as a guide for full year performance, this quarter also needs to be understood as having benefited from extra working days.
Volumes in Express have improved, albeit against a soft Q1 2009 comparison. In recent weeks, volumes have almost returned to levels seen in the more normal trading period of Q1 2007, though some customer feedback indicates that this is partially driven by re-stocking of supply chains. The negative year-on-year yield development shows early signs of stabilisation. Because cost increases inevitably follow improving volumes, cost control will remain in sharp focus. I am pleased how TNT swiftly deployed road-based alternatives to help mitigate the impact of Iceland’s volcanic eruption.
Mail achieved a good operating result due in part to an improved performance from Emerging Mail & Parcels. Addressed Mail volumes were down by 9.7%, on a comparable basis, which again points to the need for ongoing cost control and Master plan implementation.
TNT is making good progress in the implementation of Vision 2015. Although TNT assumes a modestly improving business environment in 2010, the global economic recovery remains fragile. A continued focus on costs and cash will therefore remain essential.’
* The underlying figures are at constant currency and exclude the impact of more working days in 2010 and the impact of various one-off charges in 2009.
- ENDS -
About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and keeps optimising its global network performance. TNT employs about 160,000 people. Over 2009, TNT reported €10.4 billion in revenues and an operating income of €648 million. TNT is officially quoted on the Amsterdam Stock Exchange. TNT recognises its social responsibility and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world. Our efforts are being recognised: In 2009 TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index. More information about TNT can be found on its website http://group.tnt.com.
For more information and enquiries, please contact:
TNT Media Relations
Adrian Castorina
General Manager, Marketing & Communications
Phone: 02 8304 8727
Mobile: 0419 164 938
Email: adrian_castorina@tnt.com.au
Melinda Kilpatrick
Communications Manager
Phone: 02 8304 8473
Mobile: 0488 285 980
Email:melinda_kilpatrick@tnt.com.au