Reported revenues €1,800m (+0.9%); adjusted revenues (at constant rates of FX) €1,835m (+2.9%)
Reported operating income €46m (-23.3%); adjusted operating income (at constant rates of FX and excluding business and demerger-related one-offs) €79m (-8.1%)
Due to strong EMEA performance, aggregate adjusted operating income excluding Americas was +12.0%
Brazil turnaround on track to meet 2H12 deadline, though short term challenging
Net cash from operating activities €49m and net cash used in investing activities €39m
Net debt €107m
Interim 2011 dividend of €0.04/share declared – represents 43% of 1H11 normalised net income and shareholders can choose to receive the dividend in stock or cash
Implementation of ~ €50m indirect cost savings programme started
Hoofddorp, 1 August 2011
Reported revenues €1,800m (+0.9%); adjusted revenues (at constant rates of FX) €1,835m (+2.9%)
Reported operating income €46m (-23.3%); adjusted operating income (at constant rates of FX and excluding business and demerger-related one-offs) €79m (-8.1%)
Due to strong EMEA performance, aggregate adjusted operating income excluding Americas was +12.0%
Brazil turnaround on track to meet 2H12 deadline, though short term challenging
Net cash from operating activities €49m and net cash used in investing activities €39m
Net debt €107m
Interim 2011 dividend of €0.04/share declared – represents 43% of 1H11 normalised net income and shareholders can choose to receive the dividend in stock or cash
Implementation of ~ €50m indirect cost savings programme started
EMEA yield and volume development was positive. Combined with cost efficiencies and productivity gains, this led to an 11.2% higher adjusted operating income. Asia Pacific adjusted revenues grew 9.0%. Profitability was held back by higher fuel and wage costs and volatile intercontinental volumes. Brazil experienced significantly lower revenues, which is reflected in the Americas’ loss. The company’s positioning in domestic emerging markets rests on continuing evidence that medium-term targets are achievable. Good cost control ensured an appreciably lower Non-allocated result.
Commenting on the results, Marie-Christine Lombard, CEO said:
'Europe’s performance was once again solid and is evidence of the strength of our intra-European network, wide product offering and clear customer focus. Demand from Asia to Europe has been volatile and we are optimising our capacity accordingly. The turnaround in Brazil is on track and although the short term will be challenging, we confirm our second-half 2012 deadline. Finally, our indirect cost optimisation programme has started, en route to the annualised ~ €50m targeted in 2012. The Express team’s focus is on the successful implementation of the strategy as outlined during our May 2011 Capital Markets Day, which we will revisit at the next CMD in the first quarter of 2012.’
2011 aims
Barring major changes in the economy, TNT Express’ aims for the year are unchanged:
Europe & MEA revenue to continue to grow modestly, with an underlying operating margin in line with last year (9% or slightly above)
Asia Pacific only partially to recover
Americas’ continuing negative performance being addressed through a full range of corrective measures
Other networks to perform in line with the prior year
Cash flow to be supported by tight cash capex and working capital management
In addition, TNT Express targets annualised ~ €50m cost savings, with expected related charges and write-offs €45-65m. Implementation has started, with €5m restructuring charges taken in 2Q11 and TNT Express’ head office restructuring planned for 3Q11.
