Press Release


TPG improves operating margins across the board

Publish Date : 28 February 2005 at 08:00 CET - TNT N.V. has published it's 2004Full Year & Fourth Quarter Results.

Q4 Highlights

  • Express reaches 10% operating margin for the first time
  • Logistics lifts margin to 4.1%, helped by standardisation programme
  • Wilson acquisition driving Logistics revenue growth; integration on track
  • Higher growth in European Mail Networks
  • Strong margin in Mail

Full Year Highlights

  • Strong operating cashflow and net income growth
  • Full year dividend lifted to 57 cents, up from 48 cents last year *

Subject to approval by the AGM

Key numbers

Q4 2004 €mil Q4 2003 €mil % Change FY 2004 €mil FY 2003 €mil % Change
Revenues 3,615 3,184 13.5% 12,635 11,866 6.5%
Operating income (EBIT) 349 276 26.4% 1,174 767 53.1%
Net income 191 105 81.9% 667 300 122.3%
Operating cash flow 238 262 -9.2% 1,000 937 6.7%
Earnings per share (€ cents) 40.7 22.1 84.2% 140.9 63.1 123.3%
Dividend per share (€ cents) * 37.0 30.0 23.3% 57.0 48.0 18.8%
* Proposed final dividend. Interim dividend € 0.20 per share

Operating margin

Q4 2004 Q4 2003 FY 2004 FY 2003
Mail 22.2% 21.6% 22.2% 20.9%
Express 10.0% 9.7% 7.9% 6.5%
Logistics 4.1% -1.8% 3.7% 0.6%
Logistics underlying * 4.1% 2.4% 3.7% 2.8%
* Before one-off costs in 2003: € 42 million in Q4 and € 79 million in FY

CEO Peter Bakker:
'In 2004, we have not only seen good progress in our Mail, Express and Logistics businesses, which all managed to increase their margins, but we have also made significant strides towards a great future under the strong TNT brand-name, which has now been chosen as the flag we sail under in all markets and geographies. The successful turnaround of Logistics in 2004 has continued in the fourth quarter and with the acquisition of Wilson, freight management has been added to our portfolio of services. In Mail, the prospects of real penetration into new markets is improving with strong growth in European Mail Networks. Express continues to improve, reaching a new record margin of 10% in the quarter. Let me conclude by paying a big compliment to all of my colleagues in the group, and particularly to my 60,000 Mail Netherlands colleagues who, despite the organisational changes, have managed to lift the quality of overnight delivery to a record 96.5 percent.'

Page publication date: 28 February 2005 at 08:00 CET