Focus on costs and cash pays off

TNT N.V. has published its 2009 Q2 and half year results.

Press release 2009 Q2 and Half Year results


  • 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


  • 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


  • 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 reportedUnderlying *
 Q2 2009Q2 2008% ChangeQ2 2009Q2 2008% Change
Operating income (EBIT)178324-45.1%226324-30.2%
Profit from continuing operations89207-57.0%
Profit attributable to the shareholders81205-60.5%
Cash generated from operations289337-14.2%
Net cash from operating activities41021590.7%
Operating income (EBIT)29153-81.0%89153-41.8%
Operating income (EBIT)150173-13.3%138173-20.2%

in € millions, except percentages

Reconciliation Q2 2009
As reportedExpress
Easter impact
Mail one-offsFX rates impactUnderlying *
Other networks6363
Total revenues2,5280400452,613
Other networks33
Operating income (EBIT)1783420(11)5226

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.”