TNT N.V. has published its Q3 2010 results



  • Operating income € 143 million (€ 179 million in Q3 2009)
  • Underlying* operating income € 157 million (€ 184 million in Q3 2009)
  • Profit attributable to shareholders € 75 million (€ 99 million in Q3 2009)


  • Underlying* revenues increased by 8.2% to € 1,588 million
  • Underlying* operating income € 74 million (€ 68 million in Q3 2009)
  • Strong volume growth; above 2007 levels (core kilos +9.8% versus Q3 2009)
  • Continued focus on yield improvement – full effect to be realised in 2011


  • Underlying* revenues increased by 5.6% to € 1,010 million
  • Underlying* operating income € 83 million (€ 114 million in Q3 2009); distorting impact of pension expenses
  • Underlying* Cash EBITDA € 47 million (€ 71 million in Q3 2009)
  • Addressed mail volumes in the Netherlands declined by 7.7% alongside some yield pressure
  • Parcels continues to grow strongly; announcement of € 240 million Parcels investment programme, 2010-2015


  • Ultimatum received from unions in relation to Master plan restructuring plans
  • Continuing active engagement with unions


  • Managerial and organisational separation of Mail and Express as per 1 January 2011 on track
  • Intended separation as soon as practicable in 2011
  • Further update on 2 December 2010 Analysts’ Meeting, subject to the development of current discussions with Mail unions

* The underlying figures are at constant currency and exclude the impact of the restructuring costs related to Mail (€ 5m), Express (€ 3m) and Group (€ 13m separation-related and Vision 2015 one-off costs) in 2010 and the impact of various one-offs charges in 2009.


TNT continues to see 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. The H2 2010 operating margin is expected to be in line with H1 2010’s. Yield pressure in Europe and cost developments outside Europe are not expected to be offset sufficiently by efficiency gains. Specific yield-management and ongoing cost-containment actions, once fully phased in, should increase the operating margin.

In Mail, TNT expects addressed volume decline in the Netherlands at the upper end of 7-9%, due to ongoing substitution combined with the first full-year effect of liberalisation. Master plan savings are expected to be somewhat higher than € 75 million. Mail operating income is expected to be below 2009 levels. Cash pension charges are expected to be in line with last year.

The 2010 additional financial indicators:

  • Structural cost savings: at least € 200 million
  • Capex: around € 300 million
  • Pensions: cash contributions defined benefit obligations approximately € 290 million, of which € 260 million for the main Dutch plans and the transitional plans
  • Net financial expense: around € 140 million
  • Taxes paid: around € 300 million, which includes a repayment of a preliminary tax refund from Dutch tax authorities in 2009
  • Separation-related and Vision 2015 one-off costs € 40-45 million
  • New guidance on further Master plan III restructuring provisions and associated cash outflows will be given once further clarity has been achieved given current union discussions


‘Business conditions in Q3 have generally followed the trends we experienced in the first half of the year — good but not great – with a continuation of the general recovery of activity levels held back by a difficult pricing environment.

In Express, volume growth continues to be strong. We continue to focus on the successful implementation of multiple yield-improvement measures, the full benefits of which will however not be felt until next year. Meanwhile, the business continues its focus on containing costs, including investing in own capacity to reduce intercontinental linehaul costs on the back of recent contract wins.

Mail’s quarter was characterised by further electronic substitution and continuing competitive pressure. Key to Mail’s future is the successful implementation of the final restructuring programme, which lies at the heart of Master plan III. For this reason, TNT remains actively engaged in discussions with the unions, despite their decision to present the company an ultimatum regarding the restructuring programme.

TNT continues to prepare for separation of Mail and Express in conjunction with the fulfilment of the Vision 2015 strategy. The internal managerial and operational separation of Mail and Express is fully on track to be effective on 1 January 2011.’

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