2Q14 results: Improved performance supported by restructuring initiatives

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Publish Date : 28 July 2014 08:00 CET -

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Amsterdam, The Netherlands

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

 

Segments

  • 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


Outlook Strategy

  • 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.”
__________________________________________________________________________

2014 guidance:

  • 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 results to be

        significantly better than prior year

    -   Pacific operating results to 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.

 

FINANCIAL CALENDAR

18 September 2014

27 October 2014

17 February 2015  

18 February 2015 




Extraordinary Meeting of Shareholders

Publication 3Q14 results

Publication 4Q14 results

Capital Markets Day 



For more information, please contact:

INVESTORS

Huub Popping

Phone: +31 (0)88 393 9340

E-mail: huub.popping@tnt.com


MEDIA

Cyrille Gibot
Phone: +31 88 393 9390

Mobile: +31 651 133 104

E-mail: cyrille.gibot@tnt.com


WARNING ABOUT FORWARD-LOOKING STATEMENTS

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.

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