Press Release

Q2 & HY 2010 Results

Publish Date : 2 August 2010 at 08:00 CET - TNT N.V. has published its Q2 & HY 2010 Results.

Press release Q2 & HY 2010 Results [208 kb]



  • Operating income € 55 million (€ 178 million in Q2 2009), impacted by an initial € 168 million net Master plan III provision
  • Underlying* operating income € 211 million (€ 201 million in Q2 2009)
  • Profit attributable to shareholders € 3 million (€ 81 million in Q2 2009), impacted by significant one offs
  • Cash, as expected, below prior year mainly due to phasing of taxes paid and changes in working capital
  • Interim 2010 dividend of € 28 cents per share (€ 18 cents last year), which represents ~40% of normalised net income, at choice of shareholder in cash or stock


  • Underlying* revenues increase of € 150 million (+10.3%)
  • Underlying* operating income € 73 million (€ 63 million in Q2 2009)
  • Volumes back around 2007 levels (core kilos +9.5% versus Q2 2009)
  • Yield (excl fuel surcharge) remains clearly negative both year on year and in comparison to 2007
  • Additional focus on margin improvement through yield and cost management started


  • Underlying* revenues decline of € 28 million (-2.7%)
  • Underlying* operating income € 136 million (€ 139 million in Q2 2009)
  • Addressed mail volumes in the Netherlands declined by 8.4% (corrected for working days), Parcel volumes grew by more than 10%
  • Final restructuring programme (Master plan III) announced


  • TNT announces its intention to separate fully its Mail and Express businesses
  • Internal separation expected to be implemented 1 January 2011; capital market transaction separating the equity of Mail and Express to follow after further exploration
  • Separation aims to position Mail and Express for long-term success, as two strategically coherent and financially strong businesses
  • Full update at annual Analysts' Meeting (2 December 2010)

* The underlying figures are at constant currency and exclude the impact of working days and one-offs. In 2010 underlying operating income Express is € 31 million lower and Mail is € 144 million higher than reported. Restructuring related costs and one-offs are also taken into account for 2009, see table on page 4 of the full press release.


TNT sees a modest improvement in the European economy. However, given that the global economic recovery remains fragile, caution remains warranted. The focus on costs and cash will therefore continue.

In Express, volumes and revenues are expected to be well above 2009 levels, with operating margin improvement for the year clearly tempered by yield pressure and cost inflation offsetting some efficiency gains. Specific yield management and cost actions, once phased in, aim to improve the margins coming from the higher volumes.

In Mail, TNT expects addressed volume decline in the Netherlands of 7-9%, due to the first full-year effect of liberalisation combined with ongoing substitution. Master plan savings of € 75 million are targeted. Mail operating income is expected to be below 2009 levels, including the impact of higher P&L charges for pensions.


‘In Q2 2010, TNT experienced generally improving business conditions. Express volumes were up significantly and Mail performed well.

However, integration costs and certain temporary cost pressures in emerging markets and intercontinental linehaul, along with continuing yield pressure in our core markets, are holding back Express' margin expansion. All of TNT's Express management is focused on improving the yield and margin to reflect the now more positive volumes we are carrying.

Mail put in a good quarter, with pleasing developments in Emerging Mail & Parcels. Following announcements on the large-scale Master plan restructuring in Mail NL, we today announce provisions for mobility and social plan payments. While clearly painful to many of our Dutch Mail employees, the reality of structurally declining postal volumes and continuing low-wage competition has forced us to redesign how we run our business.

As announced earlier this year, we have explored the best structure to secure the continued success of our Express and Mail divisions. Based on this review, we have concluded that a full separation will best serve both units. On a standalone basis, Mail and Express will be able to operate as best-in-class in their respective industries, by building on strong management and a solid capital structure to successfully implement their strategies. Before full separation can be implemented, the Supervisory Board and Board of Management have more work to do, including the involvement of the works councils and approval requests to our shareholders.'

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 keeps optimising its global network performance. TNT serves more than 200 countries and employs around 160,000 people. Over 2009, TNT reported €10.4 billion in revenues and an operating income of €648 million. TNT is listed 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 2009 TNT again reached the highest score of all companies included in the Dow Jones Sustainability Index. More information about TNT can be found on its website .

Page publication date: 2 August 2010 at 08:00 CET