Press Release


Focus on costs and cash pays off

Publish Date : 27 July 2009 at 08:00 CET - TNT N.V. has published its 2009 Q2 and half year results.

Press release 2009 Q2 and Half Year results [217kb]

Group

  • Recessionary business environment persists in Q2
  • Strong cash flow resulting from ongoing focus on working capital and tax
  • Interim 2009 dividend of € 0.18 per share, at choice of shareholder in cash or stock

Express

  • Volume decline stable throughout Q2
  • Strong cost savings performance at € 135 million, full year target increased
  • Underlying* operating income of € 89 million (€ 153 million in Q2 2008)
  • Reported operating income at € 29 million due to one-offs, Easter and foreign exchange impact

Mail

  • Revenue in line with last year
  • Addressed mail volume decline in the Netherlands 6%, excluding various one-off mailings
  • Operating income of € 150 million (€ 173 million in Q2 2008)
Key figures Q2
As reported Underlying *
Q2 2009 Q2 2008 % Change Q2 2009 Q2 2008 % Change
Group
Revenues 2,528 2,809 -10.0% 2,613 2,809 -6.9%
EBITDA 262 410 -36.1% 317 410 -22.7%
Operating income (EBIT) 178 324 -45.1% 226 324 -30.2%
Profit from continuing operations 89 207 -57.0%
Profit attributable to the shareholders 81 205 -60.5%
Cash generated from operations 289 337 -14.2%
Net cash from operating activities 410 215 90.7%
Express
Revenues 1,450 1,716 -15.5% 1,523 1,716 -11.2%
EBITDA 83 209 -60.3% 151 209 -27.8%
Operating income (EBIT) 29 153 -81.0% 89 153 -41.8%
Mail
Revenues 1,020 1,028 -0.8% 1,032 1,028 0.4%
EBITDA 179 201 -10.9% 167 201 -16.9%
Operating income (EBIT) 150 173 -13.3% 138 173 -20.2%

in € millions, except percentages

Reconciliation Q2 2009
As reported Express
restructuring
Express
Easter impact
Mail one-offs FX rates impact Underlying *
Express 1,450 40 33 1,523
Mail 1,020 12 1,032
Other networks 63 63
Non-allocated (5) (5)
Total revenues 2,528 0 40 0 45 2,613
Express 29 34 20 6 89
Mail 150 (11) (1) 138
Other networks 3 3
Non-allocated (4) (4)
Operating income (EBIT) 178 34 20 (11) 5 226

in € millions

* The underlying figures over 2009 are at constant currency and for Express exclude the impact of a restructuring provision (€ 34 m), the Easter impact on revenues (€ 40 m) and EBIT (€ 20 m); and for Mail net one-offs consisting of a restructuring provision (€ 4 m), a one-off charge (€ 5 m) and book gains (€ 20 m).

CEO Peter Bakker comments:

“The trading environment continued to be tough this quarter. In response, TNT's management teams have once again significantly reduced costs without jeopardising our service levels. The underlying performance in our businesses clearly improved over Q1 this year. Our focus on cash has resulted in a strong free cash flow over the first six months this year. Our announcement today of a € 0.18 dividend per share, optional in cash or shares, is a sign of confidence in our operational performance.

Through the quarter, the rate of decline of Express volumes has been stable, with a small upturn in the last weeks of June. The decline of Express volumes seems to be bottoming out. The excellent implementation of cost savings measures has allowed us to increase our savings target for the full year. In the summer period, however, there remains the possibility of longer holiday stops in production lines of our customers, which may impact volumes.

In Mail, the operating result was impacted by lower volumes, higher costs of pensions and one-off costs in EMN. After the union members had voted down the CLA agreement for TNT Post in the Netherlands, we have launched significant restructuring plans. We continue, however, to aim to develop a renewed discussion with the unions to explore wage-based alternatives.

Going forward we assume continuation of tough trading conditions to persist in the second half of the year, as early signs pointing towards improvements in the general economic climate in the second half of 2009 are still too uncertain to indicate a positive trend line development.”

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 maximise its network performance. TNT serves more than 200 countries and employs more than 163,000 people. Over 2008, TNT reported €11.1 billion in revenues and an operating income of €982 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 2008, TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index and in the Carbon Disclosure Project in the carbon intensive sector.

Page publication date: 27 July 2009 at 08:00 CET