TPG still sees FY Net from ongoing ops up 5-10 pct

TPG NV said it still expects net income from continuing operations for the full year 2002 to grow by 5-10 pct assuming an unchanged business environment.

“Although the economic cycle still shows no clear evidence of recovery, sentiment continues to indicate that there could be an improvement in the second half of the year,” said CEO Peter Bakker.

In the first quarter, sales rose 8.5 pct to 2.898 bln eur from 2.776 bln, while EBIT fell to 255 mln eur from 331 mln eur, from the same period last year. Net income from continuing operations dropped to 143 mln eur from 168 mln eur. EPS came in at 0.30 eur compared to 0.41 in the first quarter last year.

Comparative 2001 first quarter figures include one-off gains of 68 mln eur after tax in respect of the sale of non-core business, the sale of real estate and Australia restructuring costs.

TPG figures were in line with analysts’ forecasts of a small rise in operating profit with lower net earnings.

At Mail sales increased by 7.7 pct to 1.010 bln eur up from 938 mln eur due in part to acquisitions in the Mail Netherlands and European Mail Networks division. EBITA rose 4.8 pct rising to 218 mln eur up from 208.

The overall Mail operating margin was 21.6 pct, down from 22.2 pct in the first quarter last year due to a reduced level of of non-operating income and start-up costs in European Mail Networks and Data & Documentation Management.

Express sales rose to 1.075 bln eur from 1.025 or 4.9 pct due mainly to acquisitions and foreign exchange gains due to the strengthening of the sterling, Australian dollar and euro. EBITA at Express rose 23.5 pct up to 42 mln eur from 43 mln eur while operating margins rose to 3.9 pct from 3.3 pct in the first quarter last year.

Significant progress has been made on restructuring operations and administration at the Australian division, TPG said.

Sales at Logistics rose to 818 mln eur up from 722 mln eur from the first quarter last year with the acquisitions of ALS and Cargotech contributing 7.1 pct to growth.

EBITA came in at 38 mln eur up from 35 mln eur while the operating margin fell slightly to 4.7 pct from 4.8 pct, TPG said.

The rate of organic growth at Logistics rose to 4.4 pct from 2.3 pct from the previous quarter. However, due to depressed economic circumstances sales growth from existing business remained low at 2.2 pct, TPG said. New contracts added 8.5 pct to sales growth offset by a loss of 6.3 pct from terminated contracts.

At 9.15 am TPG was trading 0.28 lower at 24.70 while the AEX index was down 3.33 points at 520.80.