Press Release

Resilient cash flow in challenging operating environment

Publish Date : 4 May 2009 at 08:00 CET - TNT N.V. has published its Q1 2009 results.

Press release Q1 2009 results [202kb]


  • Q1 2009 results impacted by continued declines in volumes
  • Positive operating income in current economic circumstances, at € 163 million
  • Good free cash flow at € 114 million


  • Continued recessionary pressure on volumes, though decline seems stable since February
  • Revenue decline of 15.5%, of which 5.1% due to lower fuel surcharge and foreign exchange
  • Cost savings ahead of plan: in excess of € 100 million (more than 7% of cost base) achieved in Q1 2009
  • Operating income strongly impacted by severe volume declines in weeks 1 and 2 offset by positive Easter impact in weeks 12 and 13
  • Operating income of € 20 million on revenues of € 1,364 million


  • Overall revenues at constant rates of exchange in line with last year
  • Addressed mail volumes in the Netherlands 4.7% below Q1 2008
  • Emerging Mail & Parcels good revenue growth and operating income
  • Negative product mix development, price pressure and higher operating expenses in Mail Netherlands
  • Operating income € 149 million, 23.2% below Q1 2008

CEO Peter Bakker comments:

“The global economic operating environment has remained challenging. Despite this environment, I am pleased with the quick response of our management teams around the world. Significant cost savings have already been achieved without any sacrifice in our service levels towards our customers. The first quarter 2009 results continued the trend we saw at the end of 2008 and the beginning of this year.

International express volumes are under significant pressure and Domestic volumes saw declines as well, but as of February we saw no further acceleration in the decline. Our cost savings initiatives in Express have delivered first results and are clearly ahead of our previously guided savings target range for the full year.

Mail performance was good but impacted by higher employee-related expenses, a disadvantageous product mix and price pressure. With the Dutch mail market now fully open to competition, a further significant decrease of cost levels is required going forward. It is a regrettable situation that the union members rejected the in-principle collective labour agreement. As we have always said, this leaves TNT no choice but to develop and implement far-reaching restructuring plans.

Nothing has changed with respect to our previously indicated cautious stance towards 2009: we assume trading conditions of Q1 2009 to persist through the rest of the year, although recent stabilisation in Express is a welcomed situation.”

Page publication date: 4 May 2009 at 08:00 CET