Business update for first quarter 2008 presented at TNT AGM
Amongst the items on the agenda of the Annual General Meeting of Shareholders on 11th April, are the appointment of new members to the Supervisory Board, the reappointment of one member of the Supervisory Board and two members of the Board of Management and the dividend proposal. During his presentation on the developments in 2007, TNT CEO Peter Bakker will discuss the 2007 results, collective labour agreement negotiations with the trade unions and the liberalisation of the postal market. He will also speak on important points on the agenda for 2008:
Express
– Strong profitable growth at Express
– Further roll-out of network optimisation
Improving profitability in emerging platforms
Mail
– Master plans in the Netherlands; securing strong cash flow
– Decisions on EMN Germany
– Growing emerging mail and parcels
Group
– Focus on working capital and cash flow
– Developing accelerated profitable growth paths
As regards the first quarter of 2008, TNT will give an update on developments in the company’s business. The underlying business in Q1 2008, taking into account the influence of phasing of the public holidays and the fewer working days, developed broadly in line with the outlook given on 18 February 2008.
Express volume growth in Q1 2008, corrected for the impact of fewer working days, was in line with the volume growth in Q4 2007, as previously announced. The yield, as a measure of the price development, was higher than in both Q1 and Q4 2007. Timing of Easter, this year in Q1 and last year in Q2, has impacted operating income with comparable effects as in previous years. This impact should be reversed in Q2 2008.
Developments in the Mail division are also broadly in line with the outlook provided on 18 February. TNT again confirms the target of EUR 110 million master plan savings to be realised in 2008/2009 through efficiency measures.
TNT will finalise its current share buyback programme of up to EUR 500 million, as announced earlier, by the middle of 2008. The remaining EUR 200 million will be realised in the next few months.
TNT will publish its 2008 first quarter results on 28 April. As usual, on the publication of the quarterly figures TNT will also give an update on the outlook for the current year. Developments so far are in line with the outlook given on 18 February.
