- 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)
|As reported||Underlying *|
|Q2 2009||Q2 2008||% Change||Q2 2009||Q2 2008||% Change|
|Operating income (EBIT)||178||324||-45.1%||226||324||-30.2%|
|Profit from continuing operations||89||207||-57.0%|
|Profit attributable to the shareholders||81||205||-60.5%|
|Cash generated from operations||289||337||-14.2%|
|Net cash from operating activities||410||215||90.7%|
|Operating income (EBIT)||29||153||-81.0%||89||153||-41.8%|
|Operating income (EBIT)||150||173||-13.3%||138||173||-20.2%|
in € millions, except percentages
|Mail one-offs||FX rates impact||Underlying *|
|Operating income (EBIT)||178||34||20||(11)||5||226|
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.”
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 continues to optimise the performance of its networks. TNT serves more than 200 countries and employs some 160,000 people. Over 2009, TNT reported €10.4 billion in revenues and an operating income of €648 million. TNT is publicly listed on the stock exchange of Amsterdam. TNT recognizes 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 2010, TNT was again designated the “Supersector Leader” for “Industrial Goods and Services” (including the “Industrial Transportation” sector) in the Dow Jones Sustainability Index (DJSI), More information about TNT can be found on its website http://group.tnt.com.
PostNL is the inventive partner in the world of sending and receiving. We have been so for 200 years already. We are primarily active in the fields of mail, parcels and e-commerce, but we also offer services in the areas of data and document management, direct marketing and fulfilment. Outside the Netherlands, we are active in Germany, the United Kingdom, Italy, Belgium and Luxemburg. PostNL employs a total of more than 59,000 people. In 2013 our revenues reached € 4.3 billion.
We like to stay ahead of things. We are the most modern postal company in the world. We are proud of that. As the first listed postal company, we are an example to the rest of the world in automatic letter sorting. And our innovative parcels network is completely adapted to the wishes of web retailers.