TNT Delivers 6.2 Pct. Earnings Increase
published: cw 18, 2006 in Logistics & ShippingTNT NV, the Dutch postal company, reported a 6.2 percent increase in first-quarter earnings Wednesday, due mainly to growth at the company’s express mail division.
Net profit was euro205 million (US$259 million), up from euro193 million in 2005. Net sales increased 8.4 percent to euro2.62 billion (US$3.31 billion) from euro2.42 billion.
TNT’s Chief Executive Officer Peter Bakker said all the company’s businesses performed well. He said the company remains in talks to divest its logistics division, without naming prospective buyers.
Shares rose 3.0 percent to euro29.17 (US$36.79) by midday trading in Amsterdam.
Growth was strongest at TNT’s largest division, the express mail, which grew sales by 14 percent to euro1.44 billion (US$1.82 billion).
“The results are positive and basically in line with expectations,” said Thijs Beerkelder, an analyst with Dutch brokerage Petercam.
?We are pleased with the developments in Q1 of 2006. In all key areas of our Focus strategy, good progress has been made. Our businesses performed well, tax issues were further mitigated and the Logistics divestment is in progress. Our performance clearly supports the strategic direction that we started with our Focus strategy.? CEO Peter Bakker said.
Highlights
# 14.2% operating income growth
* Operating income up 30.5% in Express Business Segment
* In Mail, over 4% revenue growth with an operating margin of almost 22%
# Earnings per share on continuing operations up 11.7%
# Strong net cash from operating activities of ? 303 million
# Reduction in overhead costs of around ? 75 million
* Large part achieved during 2006; fully achieved by end of 2007
# Logistics divestment in progress
* Business remains stable, with top line growth
----- Advertisement -----
Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com |
 paperback student version $ 19,99 hardcover executive version $ 29,99 |
print terms
