‘Mature’ French market belies trade growth
French market share:
TNT is the third largest operator in France’s international express market, just below Chronopost’s 18.5%. DHL is the clear market leader, with 36% of the market.
Tag: Courier/Express/Parcels
TPG CFO: high fuel prices not a major factor
High fuel prices aren’t having a major impact on the three units of Dutch logistics and postal firm TPG NV, Chief Financial Officer Jan Haars said Monday. “The rise in fuel prices is not a major factor,” said Haars. TPG earlier Monday released third-quarter earnings, which showed a swing to a net profit of EUR125 million compared with a net loss of EUR88 million a year earlier. Haars said the impact of rising fuel prices on the company’s Express parcel delivery unit remained relatively muted. Analysts had focused on margins at the Express unit which they feared could have suffered from rising fuel prices.
Read MoreTPG always mentioned
It is no wonder that TPG is mentioned whenever other European postal services are looking for a partner. In the third quarter, the Dutch postman delivered 13 per cent underlying growth in net income, with revenues up 5 per cent, mostly because of organic increases. That was one of TPG’s weaker quarters lately, largely because of lower profitability in its domestic business. Like its rivals, it suffers from increasing competitive pressures, especially in direct mail. But in terms of operational efficiency and capital discipline, it remains far ahead of the likes of Britain’s Royal Mail and Germany’s Deutsche Post.
Read MoreFedEx downplays threat to Philippine hub
FedEx last week said it was untroubled about the status of its Asia hub following statements from the Philippines government concerning the renegotiation of its air services agreement with the US. The Philippine government is said to believe the existing arrangements, which give almost complete freedom for US cargo airlines to operate services through some airports in the country, are unfair to Philippine airlines. A FedEx spokeswoman told IFW: “We don’t expect any changes. That would be a big step back in time. The reason we have a hub at Subic Bay is because we have open skies there. We have an agreement to operate there until 2010 and the freedom to operate air services there is a part of that.” Talks this summer to further expand air services between the two countries broke down when Philippine representatives refused US requests to allow “seventh freedom” flights for US cargo carriers.
Read MoreTPG – Good third quarter builds on first half year trends
TPG reports a good third quarter. Highlights include double digit net income growth, the 20th consecutive quarter of positive revenue yield in Express, Logistics continues to improve its margin and another solid quarter from Mail.
The Wilson acquisition has been completed and the integration process started, operating cash flow is up EUR59 million to EUR336 million and there has been a EUR409 million share repurchase as part of the State sell-down. CEO Peter Bakker commented “I am pleased that several important positive trends we saw in the first six months of 2004 are continuing in the third quarter. Express achieved a record third quarter margin, Logistics made further progress on its path of margin improvement, and Mail put in another solid performance. With these strong results, I remain confident in the divisional outlooks.”
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