TNT revenue up 9.6%, profits down in 2Q2010

TNT revenue up 9.6% - financial highlights:

• Three months ended 30-Jun-2010:
  • Revenue: EUR2,771 million, +9.6% year-on-year;
    • Express: EUR1,715 million, +18.3%;
  • Operating profit: EUR55 million, -69.1%;
    • Express: EUR86 million, +196.6%;
  • Net profit: EUR3 million, -96.3%;
  • Net operating cash: (EUR31 million), compared with a positive cash flow of EUR410 million in p-c-p;
• Six months ended 30-Jun-2010:
  • Revenue: EUR5,518 million, +11.0%;
    • Express: EUR3,335 million, +18.5%;
  • Operating profit: EUR306 million, -10.3%;
    • Express: EUR163 million, +232.7%;
  • Net profit: EUR146 million, -7.0%;
  • Net operating cash: EUR0, compared with a positive cash flow of EUR567 million in p-c-p. [more]

TNT: "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," Company statement. Source: TNT, 02-Aug-2010.

TNT: "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," Peter Bakker, CEO. Source: TNT, 02-Aug-2010.