Within a context of severe global volatility in financial markets, the recessionary trend in the economy in Europe has accelerated, causing the volumes in the premium International Express (air) product to decrease around 10%. The Economy Express volumes (road) have continued to grow albeit well below levels of 2007.
In the Express Emerging platforms the growth and margins continued to develop in line with our outlook.
TNT's Mail business is also developing according to the outlook, producing a robust operating income and cash flow for 2008.
TNT was able to refinance its capital requirements in August, ahead of the deepening of the financial crisis in September/October. Combined with the strong cash flow, this puts TNT on a solid financial footing going forward.
TNT will present an updated outlook for 2008 in its Q3 publication on October 27. The margins in the Express ‘'International & Domestic'' line of business are currently expected to develop around a solid 9% for the full year, with somewhat lower revenue growth. No changes in other lines of the outlook are currently foreseen.
Note
TNT's outlook for the full year 2008 continues to be based on constant 2007 foreign exchange rates.
About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs more than 161,500 people. Over 2007, TNT reported €11 billion in revenues and an operating income of €1,192 million. TNT is publicly listed on the stock exchange of Amsterdam. TNT recognises its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environment Programme to fight hunger and pollution in the world.
