Tag: TNT

TNT ‘Focus on Networks’ strategy successful

Posted by | Feb 26, 2007 | |

TNT full-year revenues are up 7.8% and the operating income is 11.1% higher

TNT’s ‘Focus on Networks’ strategy seems to be working with 2006 group revenues up by 7.8% and operating income rising by 11.1%.

There was continued strong cash generated from operations – up by 14.0%.

The divestment of logistics and freight management activities was successfully completed.

New growth platforms were established in Express emerging markets – India, Brazil and China – and in European Mail Networks. Over Eur 1.9 billion of cash was distributed to shareholders in 2006.

There were strong results in the fourth quarter. A record margin of 10.7% was achieved in Express, with double digit revenue growth. Revenue growth in Mail continued, driven by a 28.1% increase in European Mail Networks.

In 2006 a dividend of Eur 292 million was proposed, a figure that was 7% higher than in 2005.

A new share repurchase of up to Eur 400 million was announced today, starting after the AGM. The outlook for 2007 aims at further revenue and profit growth.

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Brussels investigates claims of unfair subsidies to Royal Mail

Posted by | Feb 23, 2007 | |

The European Commission began an in-depth investigation yesterday into Pounds 2.6 billion of government funding received by the Royal Mail over the past six years.

The inquiry was triggered by complaints from some of Royal Mail’s competitors, including TNT and the Deutsche Post-owned DHL. They claimed that the government finance amounted to illegal subsidies and gave Britain’s main supplier of postal services an unfair competitive advantage in the recently liberalised sector.

The Commission is focusing on three individual loans to Royal Mail: Pounds 500 million (2001), Pounds 1 billion (2003) and Pounds 300 million (2007). It is also examining the conditions of the Pounds 850 million that has been placed in an escrow account to reduce the contributions the company will have to make to address the deficit in its pension fund.

Both Royal Mail and the Government insisted yesterday that the financial arrangements were perfectly legal and could not be considered unfair state subsidies.

If the Commission agrees that the loans have been made on commercial terms and satisfy market investor conditions, it will close the investigation. It pointed out yesterday that the inquiry could help Royal Mail if it removed any suspicions about the status of the loans.

The main complaint was lodged last October by the Mail Competition Forum, an association of seven licensed competitors to Royal Mail. The group, which includes TNT Post, approached the Commission to protest at the measures put in place to tackle the company’s pension fund deficit.

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European ''emerging markets'' come into focus

Posted by | Feb 23, 2007 | |

Against the background of moderate growth and increasing consolidation in mature Western European markets such as Germany, Britain and France, “emerging markets” such as Spain, Poland, Russia and Turkey are increasingly coming into focus for international express and parcel operators. In contrast to the moderate single-digit growth rates in core European markets, the continent’s smaller markets are growing at high single-digit or double-digit rates and offer attractive areas for expansion. More acquisitions can be expected in these markets during 2007.

Germany, France and Britain jointly account for over half of the total European express and parcel market, according to CEP-Research data. The “Big Three” are the home markets or major regions for carriers such as DHL, TNT, GeoPost/DPD, GLS and UPS. But the market growth rates have slowed significantly in recent years, mostly due to low economic growth, and operational costs are rising. The inevitable result is tougher competition between the market leaders and a clear trend towards market consolidation.

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Spring Global Mail enters the market for international press distribution in Germany

Posted by | Feb 21, 2007 | |

Spring Global Mail is entering the market for cross border press distribution. The new product, called Press Service, enables publishers to send products at more favourable prices than the main postal companies in Germany. In addition, the product contains a large range of services for the preparation of consignments.

The German postal market has a new player in the segment of press distribution. Spring Global Mail is entering the German market for press distribution.

Press Service offers two service levels: Premium and Economy. The rates of the Premium service are clearly more affordable than those of the main postal operator in Germany. The price advantage of the Economy service depends on the weight per item. There is no restriction on the minimum amount of items.

Spring Global Mail carries print products which are either already fully prepared by the customer or material that still requires further fulfilment. In this case Spring Global Mail offers a number of additional services, such as polywrapping, inserting into envelopes, addressing and franking. Spring carries only wrapped consignments due to quality reasons. Consignments are collected free of charge by TNT Express and the mail is distributed in the destination countries by Spring Global Mail’s partners.

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Dutch mail firm Sandd doubles profits

Posted by | Feb 20, 2007 | |

Dutch postal services company Sort and Deliver (Sandd) saw revenues rise 36% to EUR 68 million last year, from EUR 50 million in 2005.

Operating profit doubled to EUR 5 million, from EUR 2.5 million, reinforcing the company’s position as No.2 to TNT Post in the Netherlands.

Sandd delivered more than 320 million items in 2006, boosting its share of the Dutch market to 12% from 8%.

The company forecasts further growth this year, delivering 430 million items (35% more than in 2006), improving market share to 16% and revenues to around EUR 85 million (+25%).

Sandd currently has 80 distribution centres, employs 10,500 delivery workers and claims to have 1,500 customers.

“One of our objectives for 2006 was to reinforce our position with publishers, more than 40% of whom are our customers, and we have contracts with nearly all Dutch banks as a preferred supplier alongside TNT,” said Sandd CEO Bart Stomphorst.

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