TNT – Record margin in Express and strong margin in Mail

France Logistics refocuses to strategic areas
Highlights:
– Strong margin in Mail of 20.8%
– Record high margin in Express of 10.1%
– Mixed picture in Contract Logistics
– Interim dividend up 10% to 22 cents

CEO Peter Bakker:
“In the second quarter of this year we see a continued good performance of our Mail and Express divisions. The Mail division reported another strong operating margin, despite higher pension costs, and our European Mail Networks business continued to record strong organic revenue growth of 20%. Express revenues grew double digit and operating income was up 28%, reaching another margin record. The division is firmly on track to reach its ambitious target of a 10% operating margin in 2007. In Logistics, our freight management operations continue to make progress but achieving growth in some of our contract logistics business has been difficult. We have reviewed our French Logistics business unit carefully and today we announce our plans – we intend to withdraw from basic transportion activities and refocus on the areas of contract logistics where we can earn our cost of capital.”

P:LibraryTPGTNT_Q2_2005_press_release.pdf