TNT has been talking to its big shareholders in London about its new direction. Yesterday, Monday 4 December, the senior management of TNT held an ‘Analysts Meeting’ to articulate its corporate, marketing and financial strategy now that it has divested its logistics business.

Of TNT’s two businesses it is Express that is the real driver of growth. Its Managing Director, Marie-Christine Lombard asserted that the near-term prospect was for Express to grow in double digits, suggested at between 10-15%, with profit margins also rising to double digits.

Marie-Christine Lombard also discussed TNT Express’s expansion into China and India although as far as China was concerned she did not elaborate on the exact size of the business or its contribution to the rest of the company. Things are a bit more transparent in India where TNT Express expects to do ?100m of business in 2007.

However it is Europe that remains TNT Express’s core market, with a significant European market-share and an even stronger position in the largest European countries.

TNT’s other business is, of course, postal services. This has performed respectably over the past several years with slightly declining volumes but good profitability. Here the story is quite optimistic with the prospect of benefiting from market liberalisation in parts of the EU leading to a big boost in both revenue and profits. In particular TNT Post believes that ‘European Market Network’ will be highly lucrative. In contrast to the Express business, TNT Post has few rivals.

The CEO of TNT outlined a business that is profitable and growing. Both Express and Post are in markets which in their different ways, have good prospects. The question remains, however, now that there are no barriers to acquiring the company, whether it has an independent future or whether it will prove too tempting for one of its larger US rivals.

Source: Transport Intelligence

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