Further stabilising business environment in Q3; sharp focus on cost and cash continues to pay off

Amsterdam - TNT N.V. has published its Q3 2009 results.

Press release Q3 2009 results

Group

  • Cash flow remains strong; full-year cost-savings targets reaffirmed
  • Profit from continuing operations € 102 million, 10% below Q3 2008

Express

  • Quarter-on-quarter improvement in Express volumes and weight per consignment
  • Continuing success in achieving cost savings: € 128 million in Q3 2009, € 368 million year to date
  • Underlying* operating income of € 77 million (€ 99 million in Q3 2008)

Mail

  • Addressed mail volume decline in the Netherlands 4.8% in line with trend
  • Strong Master plan savings of € 24 million in the quarter
  • Operating income in line with Q3 2008
* The underlying figures over 2009 are at constant currency and for Express exclude the impact of various one-off charges

CEO Peter Bakker comments:

“In this quarter the trading environment has stabilised further – with some early signs of positive underlying developments. With Q3 being the low volume season, the EBIT of both our divisions is at a satisfactory level.
 
The rate of decline of Express volumes has modestly improved. In particular, the average weight per consignment developed positively for the first time in a year, while price pressure remained. At the same time, our people continue to deliver on cost.
 
Mail achieved a solid result helped by strong Master plan savings in the quarter. Discussions with our unions to find ways of achieving necessary cost savings are ongoing.

TNT is optimally positioned to take advantage of a possible economic upturn but also needs to be prepared for continued harsh economic conditions and therefore remains focused on achieving its aggressive cost and cash control targets.”