TNT Q2 net to rise 10 pct, to announce France restructuring details
TNT NV is expected Friday to report higher net profit over the second quarter, and announce details of a restructuring operation at its Logistics France division.
TNT had earlier announced its intent to reorganise, but said it would give details during the second quarter earnings presentation.
Net profit is expected to come in at the 211-221 mln eur range, from 210 mln eur a year earlier, with revenues rising to 3.34-3.39 bln eur, from 3.05 bln eur previously, according to analyst forecasts compiled by AFX News.
Kempen & Co analyst Charles Estourgie expects the Mail and Express divisions will show sustained growth, but said focus should be at Logistics France.
‘The attention should go to the turnaround plan for France… We believe the restructuring plan may include a headcount reduction of 1,000 employees, which would require a one-off charge of some 50 mln eur,’ Estourgie said.
Kempen & Co rates TNT at ‘hold’ with a price target of 24 eur.
Cheuvreux analyst Jan-Kees Mons expects that both the Express and Mail divisions will report higher sales, although the Dutch domestic Mail market is suffering from ‘erosion’ which should be compensated by volume gains in the European Mail Networks.
But Mons added that the handling of TNT’s Logistics situation in France is all-important. ‘The focus is clearly on how the French problems will be solved,’ he said.
Cheuvreux rates TNT at ‘Outperform’, with a price target of 23.5 eur.
F. Van Lanschot Bankiers analyst Danny van Doesburg is optimistic and is looking beyond TNT’s second quarter in his analysis. ‘We see little downside risk and very good shareholder returns,’ he said.
‘TNT’s European Mail Networks is growing fast and for the longer term the company is well positioned to grow in China.’
F. Van Lanschot Bankiers holds TNT at ‘buy’, with a price target of 24 eur.
kel/cml
