Reported operating income €8m positive (2Q13: €287m negative), reported revenues €1,662m (-5.9%)
Higher adjusted operating income €82m (2Q13: €60m)
Adjusted revenues €1,703m (-3.6%) but restated for disposal China Domestic and sale Dutch TNT Fashion Business adjusted revenues + 1.1%
Better results in all segments apart from UK Domestic as part of Europe Main
Outlook Strategy on track: cost reduction programme €33m achieved in the quarter (1Q14: €30m)
Period end net cash €395m (1Q14: €402m)
Interim pro forma 2014 dividend of €0.049 per share declared representing 40% pay-out of 1H14 normalised net income; shareholders may choose to receive the dividend in stock or cash
Europe Main: Results flat reflecting uneven economic growth and competitive pressures
Europe Other & Americas: Profit growth supported by solid yield development
Pacific: Market remained difficult, but targeted cost initiatives improved profitability
AMEA: Strong across-the-board performance
Brazil Domestic: Recovery continued and moved into profit after first quarter breakeven
2Q14 restructuring-related charges and restructuring-related implementation cost €74m
Ongoing investment in Liège Eurohub and road infrastructure
New segment reporting to be implemented at 4Q14, with full reconciliation
Capital Markets Day confirmed for 18th of February 2015
Commenting on this quarter's developments, Tex Gunning, CEO said:
'“This quarter we were pleased to report adjusted net income up by 36.7% and deliver profit improvements in Brazil, AMEA and certain parts of Europe. However we are experiencing uneven economic growth across Western Europe and see competitive pressures in some of these countries continuing.
Cost savings and restructuring remain on track and “Outlook 2016” initiatives are now being implemented globally across all TNT’s business units.
We are organising a Capital Markets Day on 18 February 2015, where the new management Board will present detailed plans for the new operating units (Domestic, International Europe and International AMEA).
With the new management Board in place and the intrinsic strength and commitment of our people, I have great confidence we can build a sustainable future for TNT, meeting the expectations of our shareholders, customers and employees.”
Assuming stable or improving external conditions:
- Combined Europe Main and Europe Other & Americas operating results
to show positive development
- Asia Middle East & Africa and Brazil Domestic operating resultsto be
significantly better than prior year
- Pacific operating resultsto remain under pressure
- Europe investments in marketing and brand increases by €15-20m
- Unallocated around €(30)m
Business as usual capex (excluding Outlook investments) up to around 3% of revenues
Year-to-date performance commentary
Year to date, adjusted revenue decreased by 3.2% but restated for disposal China Domestic and sale Dutch TNT Fashion Business was up by + 0.8%.
Adjusted operating income increased by €52m (64.2%). Year-to-date adjusted operating income saw growth in Europe Main and the continuation of improvements in Europe Other & Americas, AMEA and Brazil Domestic.
Some statements in this press release are "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this press release and are neither predictions nor guarantees of future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.