Press Release


'Focus on Networks' strategy successful

Publish Date : 26 February 2007 at 08:30 CET - TNT N.V. has published it's 2006 Full Year & Fourth Quarter Results.

‘Focus on Networks' strategy successful

TNT full-year revenues up 7.8% and operating income 11.1% higher

  • ‘Focus on Networks' is working
    • 2006 group revenues up 7.8% and operating income 11.1% higher
    • Continued strong cash generated from operations - up 14.0%
    • Divestment of logistics and freight management activities successfully completed
    • New growth platforms in Express emerging markets - India, Brazil and China - and in European Mail Networks
    • Over € 1.9 billion of cash distributed to shareholders in 2006
  • Strong results in fourth quarter
    • Record margin of 10.7% in Express, with double digit revenue growth
    • Continued revenue growth in Mail driven by 28.1% increase in European Mail Networks
  • 2006 dividend of € 292 million proposed, 7% higher than in 2005
  • New share repurchase of up to € 400 million announced today, starting after AGM
  • Outlook for 2007 aims at further revenue and profit growth
Key numbers
Q4 2006
€ mil
Q4 2005
€ mil
% Change
Revenues 2,767 2,571 7.6%
Operating incomes (EBIT) 355 319 11.3%
Profit from continuing operations 236 209 12.9%
Profit/(loss) from discontinued operations (46) (100)
Profit/(loss) attributable to the shareholders 189 108 75.0%
Cash generated from operations 425 366 16.1%
EPS (in € cents) 46.1 23.8 93.7%
EPS from continuing operations (in € cents) 57.3 45.8 25.1%
Key numbers
FY 2006
€ mil
FY 2005
€ mil
% Change
Revenues 10,060 9,329 7.8%
Operating incomes (EBIT) 1,276 1,148 11.1%
Profit from continuing operations 828 770 7.5%
Profit/(loss) from discontinued operations (157) (109)
Profit/(loss) attributable to the shareholders 670 659 1.7%
Cash generated from operations 1,338 1,174 14.0%
EPS (in € cents) 159.3 145.0 9.9%
EPS from continuing operations (in € cents) 196.6 169.0 16.3%

CEO Peter Bakker:

“TNT concludes the first full year of its ‘Focus on Networks' strategy with good progress on all fronts. Our continuing operations have delivered robust results, with the record operating margin in Express and further cost efficiencies in Mail Netherlands, all leading to a double digit operating income growth. The logistics and freight management activities have been successfully divested. We have accelerated revenue growth in several key areas including Express emerging markets, with important acquisitions in India, Brazil and soon China, as well as in the UK and German Mail businesses. For the first time, TNT has complied with all SarbOx regulations, with no material weaknesses.

I wish to thank everyone in the company for their contribution to making 2006 a very good year for TNT. With the group in good shape, we look forward to the opportunities and challenges of 2007 with enthusiasm.”

Page publication date: 26 February 2007 at 08:30 CET