TPG posts record profit of 526 million euros

The Dutch postal group TPG posted on Monday a record net profit of 526 million euros for 2000, an increase of 25.5 percent from the previous year, on sales of 9.93 billion euros.

TPG also announced the government would cede 7.3 percent of its 43.
3-percent stake in the company, and that it expected approval this week by
the European Union for a joint project with the British Royal Mail and
Singapore Post.

“First of all, we recorded a record result for 2000,” TPG chairman Ad
Scheepbouwer told a press conference in Amsterdam.

The 526 million euros (492 million dollars) exceeded analysts’ forecasts
of 487-505 million euros, but TPG shares dipped by 0.18 percent in early
trade on the Amsterdam exchange.

Scheepbouwer also said he expected the EU to approve the group’s Delta
project, a Belgian-based joint venture with the Royal Mail and Singapore
Post to provide global mail services to businesses.

TPG agreed to spin off its courrier unit TNT International to allay fears
it would dominate its domestic market.

“This is not a great concession because we are ceding an activity with
sales of 11 million euros,” Scheepbouwer explained.

The new group, in which TPG would hold 51 percent of the shares, is to
operate in 200 countries, and is expected to produce initial yearly sales
of 450 million euros.

If the venture goes through, it would be the first time postal services
from different countries will have joined forces for letter delivery, in
direct competition with national post operators, the Financial Times
reported when the project was announced in March 2000.

TPG’s chairman said on Monday that his firm also sought to expand
operations in Britain and France.

“We will do that either by acquisition, or by developing our own networks
as the markets are liberalised,” he said.

The Dutch government will sell off 7.3 percent of its shares, worth around
800 million euros, to European institutional investors.

iw/wai/hd
AFP ENGLISH, 12th March 2001