TNT sees “positive development” in Express

TNT has continued to see a “positive development” of its volumes in the Express division in Q4 2009. The volumes in air, road and domestic in Q4 were all above those in Q4 2008. TNT views this as encouraging after the sharp but as of Q2 stabilising volume decline in the first nine months of 2009 against 2008.

For the first time in 2009, the Express operating margin in Q4 was above that in Q4 2008. The focus on cost savings has contributed substantially to this result, while price pressure has continued.

In Mail, the decline in addressed volumes in the Netherlands in Q4 2009 was in line with expectations as was operating income, helped in particular by good Master plan savings and strong “Christmas volumes”.

“The first two weeks in 2010 saw a continuation of the somewhat more positive volume trend of Q4 2009 in Express. Price pressure is still noticeable, however. The cost savings programmes continue to be on track to optimise our cost base further. In Mail, in line with guidance given at the 3 December 2009 analyst meeting, volumes are under pressure due to liberalisation and substitution, whilst cost savings progress will continue to support a continued good cash contribution,” a company spokesman said.

“Impairments (non cash) at the end of 2009 of goodwill and certain assets in EMN will be approximately EUR 150m. In Express, further impairments for already decommissioned planes and certain intangibles will be approximately EUR 20m. Both impairments will be charged against the Q4 results and are roughly in line with indications given on 3 December.”