TNT announces 2006 Q1 results.

Amsterdam, TNT N.V. announced today the 2006 Q1 results.

14.2% operating income growth
Operating income up 30.5% in Express Business Segment
In Mail, over 4% revenue growth with an operating margin of almost 22%

Earnings per share on continuing operations up 11.7%
Strong net cash from operating activities of € 303 million
Reduction in overhead costs of around € 75 million
Large part achieved during 2006; fully achieved by end of 2007
Logistics divestment in progress
Business remains stable, with top line growth

Key numbers Q1 2006 €mil Q1 2005 €mil % Change
Revenues 2,647 2,430 8.9%
Operating income (EBIT) 329 288 14.2%
Profit from continuing operations
216 202 6.9%
Profit/(loss) from discontinued operations
(11) (8)
Profit/(loss) attributable to the shareholders
205 193 6.2%
Net cash from operating activities
303 65 366.2%
EPS (in € cents)
47.0 42.5 10.6%
EPS from continuing operations (in € cents)
49.5 44.3 11.7%

CEO Peter Bakker:
“We are pleased with the developments in Q1 of 2006. In all key areas of our Focus strategy, good progress has been made. Our businesses performed well, tax issues were further mitigated and the Logistics divestment is in progress. Our performance clearly supports the strategic direction that we started with our Focus strategy.”

TNT profit climbs 6%, plans 75M euros in cost cuts
MarketWatch Bullets, Issue. 0 05-03-2006
5/3/2006 02:35:13 AM

LONDON (MarketWatch) — Dutch delivery services group TNT tpnl:00906 said first-quarter profit rose 6.2% to 205 million euros, or 0.47 euros a share, with revenue up 8.9% to 2.65 billion euros. The group said Italy, Germany and the Benelux region led Express growth, while a positive price and mix effect absorded the impact of a volume decline in its Dutch mail division. TNT also announced a plan to cut overhead costs by 75 million euros on a simplication of the organizational structure and reduction of project costs in a move that will lead to “minor” job cuts.