Press Release


Pressure on results in European recessionary business environment

Publish Date : 27 October 2008 at 08:00 CET - Amsterdam, TNT N.V. has published it's 2008 third quarter results.

Express

  • Operational revenue growth 5.9%
  • Premium (air) volumes in Europe under increasing pressure in the quarter
  • International Economy and Special Services products good revenue growth
  • Good performance Emerging Platforms
  • Operating income down 21.5% at constant fx
  • Cost savings programmes aggressively being implemented

Mail

  • Continued strong operational revenue growth Emerging Mail & Parcels
  • Mail operating profit in line with outlook

Group

  • Group in strong financial position, capital requirements substantially refinanced in August
  • Net cash from operating activities YTD Q3 up 8.8%

Outlook

  • Outlook Express revised downward
  • Outlook Mail reaffirmed
Key figures Q3
As reported



Q3 2008

€ mil
% Change Q3 2007
€ mil
% Change At constant fx



Q3 2008

€ mil
Group
Revenues 2,687 1.5% 2,648 4.3% 2,762
EBITDA 297 -13.7% 344 -12.0% 303
Operating income (EBIT) 209 -19.0% 258 -18.2% 211
Profit from continuingoperations 113 -31.9% 166 -31.9% 113
Profit from discontinuedoperations 0 0 0
Profit attributable to theshareholders 113 -32.3% 167 -32.3% 113
Net cash from operatingactivities 104 -28.8% 146
Express
Revenues 1,656 2.3% 1,619 5.9% 1,714
EBITDA 154 -16.8% 185 -13.0% 161
Operating income (EBIT) 99 -23.8% 130 -21.5% 102
Mail
Revenues 964 -0.2% 966 1.7% 982
EBITDA 147 -11.4% 166 -11.4% 147
Operating income (EBIT) 116 -14.7% 136 -14.7% 116
Key figures YTD Q3
As reported



YTD Q3 2008

€ mil
% Change YTD Q3 2007
€ mil
% Change At constant fx



YTD Q3 2008

€ mil
Group
Revenues 8,219 2.6% 8,013 5.3% 8,439
EBITDA 1,088 -9.0% 1,196 -7.2% 1,110
Operating income (EBIT) 822 -12.5% 939 -11.2% 834
Profit from continuingoperations 499 -21.2% 633 -20.2% 505
Profit from discontinuedoperations 0 206 0
Profit attributable to theshareholders 497 -40.7% 838 -40.0% 503
Net cash from operatingactivities 569 8.8% 523
Express
Revenues 4,986 4.1% 4,789 7.7% 5,159
EBITDA 523 -7.9% 568 -4.0% 545
Operating income (EBIT) 358 -12.9% 411 -10.0% 370
Mail
Revenues 3,041 -0.2% 3,047 1.4% 3,089
EBITDA 579 -10.2% 645 -10.1% 580
Operating income (EBIT) 483 -11.9% 548 -11.7% 484

CEO Peter Bakker comments:

“As we had already highlighted in our October 16 trading update the conditions in our European Express business have significantly worsened in September and the first weeks of October. Air volumes in September were down an unprecedented 10%, while Road volumes were showing low growth. We expect this pressure on volumes to persist at least in the current quarter.

On the positive side the Mail business has performed in line with our outlook. Also we refinanced our capital requirements in August, ahead of the deepening of the financial crisis in September and October. This, coupled with our robust cash flow, leaves us on a solid financial footing.

In these times management focus on efficient operations is even more essential. Our Master plans in Mail continue successfully, we are aggressively implementing the announced € 125 million cost optimisation programme in Express, we focus on improving air network efficiencies and we target all other cost areas for savings as well. At our analyst meeting on 4 December 2008, we will provide further details in this respect.”

Page publication date: 27 October 2008 at 08:00 CET