TPG's Bakker: 2002 Will Be Challenging

Dutch postal, logistics and express operator TPG has bucked the present economic woes and turned in a net income of E 585m ($506m) for last year, representing a 23.7% increase on the previous year. However, the group warned that the economic climate in 2002 would be ‘challenging’ and would only provide low growth in the near future. TPG expected net income to grow from continuing operations by between 5% and 10%, which assumed an unchanged business climate. Turnover for 2001 was up nearly 13% at E 11.2bn and the company warmed the hearts of shareholders, with earnings per share climbing just over 24% to E 1.23. The company said it intended to pay a 2001 final dividend of E 0.38 per ordinary share, which represented a payout ratio of 30.9% in line with its policy. Chairman and chief executive Peter Bakker said all three of its businesses had produced solid underlying revenue growth and all had achieved improved operating margins. Revenue growth in mail had increased considerably due to international acquisitions and improved organic business development despite a continuing decline in its domestic addressed mail market. Logistics had also withstood the impact of the economic downturn, with growth of more than 40%, but this was largely the result of acquisitions. Although the division had lower organic growth it had continued to improve operating margins. Margins improved by less than 1% to 5.8%, due mainly to introducing tighter cost controls.” Lloyds List: “Express had been ‘significantly affected’ by worsening economic conditions in the second half. This division had managed a positive organic revenue growth, excluding Australia, and had improved its operating margin through a combination of ‘yield management and strong cost and capacity control’. Express organic revenue growth for the year was 1.8% but a combination of ‘unfavourable foreign exchange differences and an adverse acquisition impact’ had left total express revenues dipping by 0.1% year-on-year, excluding Australia.