Press Release


Start to the year in line with expectations; full year outlook reaffirmed

Publish Date : 28 April 2008 at 08:00 CET - TNT N.V. has published it's 2008 first Quarter Results.

Group

  • Results versus Q1 2007 show expected impact of week 1, working days and Easter phasing
  • Underlying business growth develops in line with Q4 2007 as expected

Express

Adjusted for impact week 1 and Easter:

  • Core volume growth in line with Q4 2007, up 3.3%; yield 5.1%
  • Operational revenue growth 10.4%
  • Emerging platforms operational revenue growth well above 20%
  • Operating margin in line with Q1 last year, at 8.2%

Mail

Adjusted for impact working days and € 7 million restructuring costs:

  • Operational revenues 1.4% above last year's level
  • Emerging Mail & Parcels operational revenue growth over 15%
  • EBIT at € 209 million (Q1 2007: € 231 million); decrease due to € 12 million higher net one-offs in Q1 2007 and autonomous volume reduction
Key figures Group
actuals
Q1 2008
€ mil
Q1 2007
€ mil
%Change
Revenues 2,723 2,676 1.8%
EBITDA 381 436 -12.6%
Operating income (EBIT) 289 351 -17.7%
Profit from continuing operations 179 234 -23.5%
Profit from discontinued operations 0 195
Profit atributable to the shareholders 179 427 -58.1%
Net cash from operating activities 250 238 5.0%
EPS from continuing operations (in € cents) 48.7 59.6 -18.3%
Earnings per schare (in € cents) 48.7 109.8 -55.6%
Express
Revenues 1,614 1,562 3.3%
EBITDA 160 180 -11.1%
Operating income (EBIT) 106 130 -18.5%
Mail
Revenues 1,049 1,059 -0.9%
EBITDA 231 265 -12.8%
Operating income (EBIT) 194 231 -16.0%
* The figures in the additional table above (in italics) are added for transparency reasons to indicate the underlying development of business operations in Q1, by excluding the impact of foreign exchange, the number of woriking days, the phasing of the week 1 and Easter and a first € 7 million of the approximately € 70 million Postkantoren restructuring costs previously announced. The € 12 million higher net one-offs in Q1 2007 are not taken into account.
Key figures Group
Underlying*
Q1 2008
€ mil
% Change Q1 2007
€ mil
Revenues 2,859 6.8% 2,676
EBITDA 431 -1.1% 436
Operating income (EBIT) 339 -3.4% 351
Profit from continuing operations
Profit from discontinued operations
Profit atributable to the shareholders
Net cash from operating activities
EPS from continuing operations (in € cents)
Earnings per schare (in € cents)
Express
Revenues 1,724 10.4% 1,562
EBITDA 195 8.3% 180
Operating income (EBIT) 141 8.5% 130
Mail
Revenues 1,074 1.4% 1,059
EBITDA 246 -7.2% 265
Operating income (EBIT) 209 -9.5% 231
* The figures in the additional table above (in italics) are added for transparency reasons to indicate the underlying development of business operations in Q1, by excluding the impact of foreign exchange, the number of woriking days, the phasing of the week 1 and Easter and a first € 7 million of the approximately € 70 million Postkantoren restructuring costs previously announced. The € 12 million higher net one-offs in Q1 2007 are not taken into account.

CEO Peter Bakker comments:

“The first quarter results came in below last year, all of which is explained by the impact that was foreseen of the unfavourable phasing of week 1, the lower number of working days, Easter falling in the first quarter this year, and one-offs in Mail. The impact of Easter in Express has been reversed fully in the second quarter. Taking this into account, the first quarter brought a satisfactory underlying result development for TNT, especially for Express, where also the Emerging platforms showed good progress. Mail on the other hand continues to feel the pressure from declining volumes in the Netherlands.

TNT and the trade unions in the Netherlands have been in a dialogue for some time. During these discussions, a common understanding has been reached that there is a need for substantial changes in order to bring the labour conditions of our employees more in line with the market. The trade unions have demanded a 3.5% salary increase up front, before wishing to commit themselves to these changes, whilst TNT wants a commitment to these changes as part of being prepared to pay 3% in two phases. An ultimatum set by the trade unions has expired, and selective strike actions have commenced. TNT has requested the trade unions to return to the negotiation table to work on an outcome that also reflects the need for market conformity.

Although financial markets and global economic contexts remain volatile, TNT so far experiences market circumstances in line with its outlook as given in February. We see economic activity in our markets at the same level as in Q4 of last year as indicated earlier. Therefore TNT today reaffirms its full year outlook.”

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 is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs around 161,500 people. Over 2007, TNT reported €11 billion in revenues and an operating income of €1,192 million. TNT is publicly listed on the stock exchange of Amsterdam. TNT recognizes 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.

Page publication date: 28 April 2008 at 08:00 CET