Press Release

2Q12 results: Economic slowdown puts pressure on European performance; Asia Pacific and Brazil improve

Publish Date : 30 July 2012 08:00 CET -

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Hoofddorp, The Netherlands, 30 July 2012

  • Reported revenues €1,830m (+1.7%); adjusted revenues (at constant FX) €1,767m (-1.8%)
  • Reported operating income €77m (+67.4%); adjusted operating income (at constant FX and excluding one-offs) €69m (-6.8%)
  • Net cash from operating activities €39m, net cash used in investing activities €10m; net debt €(6)m (1Q12: €36m net debt)
  • €50m indirect cost savings programme to be fully implemented by year end
  • Europe & MEA additional fixed-cost savings being pursued; timing of implementation temporarily adjusted in light of UPS Offer
  • UPS Offer expected to complete in 4Q12, following further European Commission review

Despite demanding economic conditions in Europe & MEA, volume growth was good. However customers increasingly opted for non-premium products. The resulting negative product mix plus general price pressure were mitigated by cost-control initiatives.

In Asia Pacific, operating income improved even though international volumes declined. All units performed better, in particular Australia, China Domestic (Hoau) and India.

Americas saw an improved performance from Brazil, though challenges remain.

Other Networks results' were ahead of the prior year’s. Non-allocated costs continue to be contained.


Commenting on this quarter’s developments, Marie-Christine Lombard, CEO said:

‘Despite an increasingly challenging economic environment, TNT Express was able to sustain profitability. In Europe, good volume growth underscores the strength of our diversified product portfolio. Cost savings and revenue-enhancement initiatives also supported profits. Performance in Asia Pacific and Americas continued to improve as a result of business development and restructuring measures.

The UPS Offer was formally launched in June. Earlier this month, UPS and TNT Express announced that the European Commission’s assessment of the transaction would move to a phase II review as certain areas require more time to analyse. We expect to conclude the regulatory process by 4Q12. I want to reemphasise the strong strategic rationale for the combination. An enhanced product portfolio, joint functional excellence and expanded geographic reach will create an unmatched combined service proposition for our customers. We look forward to discussing the Offer with our shareholders at our upcoming Extraordinary General Meeting.’


2012 outlook and aims

  • Increasingly challenging trading conditions in Europe and Asia Pacific intercontinental
  • Europe & MEA: indirect and fixed cost control initiatives in place to help mitigate impact of negative yield trend
  • Asia Pacific: benefit from reduced exposure to fixed intercontinental air capacity and contract portfolio management
  • Americas: focus on improving results Brazil
  • Timing of implementation of certain long-term projects that are part of 2012-2013 fixed-cost savings programme temporarily adjusted in light of the proposed UPS Offer
  • Working capital to be in line with medium-term aims, capital expenditures lower


Medium-term outlook and aims:

  • Europe & MEA revenue to grow organically and through new initiatives in adjacent market segments, with an operating margin increasing to 10-11%
  • Positive contributions from other operating segments
  • Capital expenditure around 3% of total revenue and trade working capital around 10% of total revenue
  • Effective tax rate trending towards 31-33%


More detailed quarterly financial and operational information: datasheets.xls
For the full press release, please see here.



Andrew Beh
Director Investor Relations
Phone +31 (0) 88 393 9500


Ernst Moeksis
Director External Communication
Phone +31 (0) 88 393 9323
Mobile +31 (0) 65 118 9384


Taurusavenue 111
2132 LS Hoofddorp
P.O. Box 13000
1100 KG Amsterdam
Phone   +31 (0)88 393 9000
Fax       +31 (0)88 393 3000



Some statements in this press release are "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this press release and are neither predictions nor guarantees of future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.


Page publication date: 30 July 2012 8:00 CET