TNT issues profit warning
TNT warned that bad weather in Europe, plus a period of industrial action, has affected its Q4 2010 operating profit figures by around EUR 45m. For its Mail arm, TNT said that the estimated cost of employee strikes and December’s adverse weather stood at EUR 10m.
In its Express division, TNT’s Liege hub was shut for two days; with the estimated negative impact on Express divisional EBIT standing at EUR 15m.
In Brazil, additional integration-related cost the Express arm EUR 20m.
TNT said its Express division “does not foresee a negative effect on the previously guided 2011 EBIT range of EUR 420-440m – excluding the allocation of around EUR 20m of central head office costs”.
Full-year results for 2010 will be published by TNT on February 21.
On 2 December 2010, TNT announced its proposal to separate its Mail and Express businesses. The internal legal and organisational separation is on track with completion of the announced restructurings on 1 January 2011.
During the separation announcement, it was confirmed that Peter Bakker will leave TNT after the demerger.
Bakker has been at the TNT for almost 20 years, and has served as chairman and CEO since 2001.
His planned departure was revealed after TNT said it will retain a stake of 29.9% in the Express unit to cover separation costs. These shares will be returned to shareholders as soon as possible, the company said.
Earlier this week, TNT saw its deal for the reduction of compulsory redundancies in the Netherlands ratified by the Dutch unions.
Previously, TNT reached an agreement with the unions to reduce the number compulsory redundancies by 1,700.
Due to falling mail volumes, the company originally said it required 11,000 jobs to be cut. Allowing for natural attrition and voluntary redundancies, 4,500 compulsory job cuts were originally planned.
The agreement – between TNT and Abvakabo FNV, CNV Publieke Zaak, and BVPP unions – saw that figure reduced to 2,800.
The deal was passed by members from each specific union over the last week.