Tag: TNT

Chinese CEP market to outgrow Germany

Posted by | Aug 1, 2007 | |

The booming Chinese courier, express and parcel (CEP) market will outgrow Europe’s largest market, Germany, within fi ve years if it maintains its current dynamic growth rates. The world’s four leading express players, DHL, FedEx, TNT and UPS, look set to win signifi cant market share from Chinese operators by expanding their domestic services. In response, Chinese players are trying to strengthen their fi nancial basis and enhance their services. Those are the key fi ndings of a new “CEP Market Fact Sheet China” from Hamburg-based market researchorganisation, CEP-Research.

The Chinese CEP market has soared with average annual growth rates of about 25 percent in recent years, nearly quadrupling in value from about EUR 1 billion in 2000 to over EUR 3.8 billionin 2006, according to CEP.

Demand has been driven by economic liberalisation, a surge in foreign trade and the emergence of a strong domestic consumer market. Looking ahead, growth rates in the 25 percent- 30 percent range are expected for the next few years, taking the market to over EUR 12.5 billion in 2011, CEP-Research forecasts. This would make China bigger than Germany, France and UK, the three largest express and parcel marketsin Europe.

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TNT opens new office in Mendoza, Argentina

Posted by | Aug 1, 2007 | |

TNT Express has continued its expansion in South America with the opening of larger premises in the Argentinean city of Mendoza last July. .

The new facility, with handling space of 250 msq, 300 msq of storage capacity and associated offices, is four times larger than the previous depot, the company said.

TNT Argentina said that the enlarged premises followed double-digit growth of 15 pct in weight transported and of 13 pct in volumes over the last six months. “We are thus consolidating in one of the most important export regions in the country,” the company stated.

“This will enable us to improve our consolidated air cargo service and to broaden the operational capacity ready for the peak season,” commented branch manager José Luis Bellino.

TNT Argentina has own offices at Buenos Aires international airport and downtown Buenos Aires as well as in the cities of Córdoba, Rosario, Mar del Plata, Mendoza and a recently opened branch in Salta.

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TNT CEO calls for equal treatment of postal services in Germany

Posted by | Jul 30, 2007 | |

TNT NV said Deutsche Post should lose its VAT exemption to enable all postal services in Germany to compete on an equal footing, said TNT’s chief executive Peter Bakker.

In an interview with news agency dpa, Bakker also called for full liberalization of postal services in Germany by early 2008, when TNT plans to increase its offering to letters below 50 grams.

The company plans to increase its market penetration to 40 pct of German households during 2008 from the current 20 pct, he added.

The EU last week asked Germany, among other countries, to change its legislation of VAT exemption for mail delivery charges, which is not compatible with an EU VAT directive.

Earlier press reports had suggested the German government was contemplating extending the preferential VAT treatment to Deutsche Post’s competitors.

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TNT announces new 500 mln Eur share buyback

Posted by | Jul 30, 2007 | |

TNT NV will launch a new 500 mln Eur share buyback, the company said in a statement while presenting its second-quarter earnings.

TNT said any savings resulting from its current refinancing plan will be used toward funding the company pension plan and the share buyback.

It expects this latest buyback to be completed in the middle of next year, at which point TNT said it will consider further repurchases to maintain optimal capital structure and strategic flexibility.

The company’s current 400 mln Eur buyback, which began in April, is still in progress, and TNT said 234 mln Eur worth of shares have been repurchased to date.

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TNT plans aggressive UK expansion

Posted by | Jul 30, 2007 | |

TNT, the Dutch mail group, is planning a further aggressive expansion in the UK and elsewhere in Europe in a new drive to offset its declining postal business at home.

Executives said in Amsterdam that the company was raising its forecast for volume growth in its European mail networks (EMN) division – mainly Britain and Germany – to between 30 pct and 35 pct this year from 25 pct and its operating margin to 17.5 pct from 17 pct. Volume growth was 37 pct in the second quarter.

TNT, which has capitalized on the running series of strikes by postal workers at Royal Mail, said organic growth in EMN was up 21.3 pct in the first half, driven overwhelmingly by its UK business. It has started up a new parcels business in Britain. But mail volumes in Holland declined by 3.5 pct in the second quarter.

The former Dutch monopoly, one of Royal Mail’s biggest new rivals, has already indicated that it plans to develop a full-scale network in Britain rather than use that of its UK rival to deliver mail. Peter Bakker, chief executive, said today the group’s new strategy would be disclosed in December.

Giving an upbeat outlook for the full year, Mr Bakker said operating income fell 2 pct in the second quarter to EUR 330 m (GBP 223 m) because of one-off costs but half-year sales were up 9.6pct at EUR 5.4 bn and profits up 2.6 pct at EUR 681m. TNT is raising the interim dividend by 15 pct to EUR 0.30 and initiating a further EUR 500m share buy-back.

Mr Bakker made plain that TNT is worried by the delayed date – 2011 rather than 2009 – for the introduction of full-scale liberalization of EU postal markets and the impact of this in Germany which is due to bring in full competition for Deutsche Post next year. Britain’s market has been open to competition since 2006 and TNT is active in eight of the 27 domestic European markets.

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