In 1Q12, TNT Express experienced mixed economic conditions in Europe and slowing Asia-Europe trading volumes. Europe & MEA was affected by negative price and product mix developments. Results in Asia-Pacific, while under pressure because of weakness out of Asia, benefited from the strong performance of the Australian operations and cost reductions. China Domestic performed according to plan. Americas saw improved performance from Brazil. Non-allocated costs were lower.
Press Release
1Q12 results: Subdued European performance, Asia Pacific and Brazil improve
Publish Date : 02 May 2012 08:00 CET -
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- Timetable for completion of proposed UPS offer proceeding as previously indicated
- Reported revenues €1,819m (+1.3%); adjusted revenues (at constant FX) €1,780m (-0.9%)
- Reported operating income €37m (1Q11: €(79)m); adjusted operating income (at constant FX and excluding one-offs) €34m (1Q11: €50m)
- Net cash from operating activities €(2)m, net cash used in investing activities €13m and net debt €36m (4Q11: €7m net debt)
- Indirect cost savings programme launched in May 2011 on track
- Timing of implementation of certain long-term projects that are part of 2012-2013 fixed-cost savings programme temporarily adjusted in light of the proposed UPS offer
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Commenting on the results, Marie-Christine Lombard, CEO said:
‘As announced at the beginning of the year, the first quarter of 2012 has been challenging, given the ongoing sluggish business environment. In Europe, cost savings and commercial initiatives are being pursued to mitigate revenue pressure. Profitability in Asia-Pacific improved, despite weak intercontinental demand. Americas also improved, with better results in Brazil. In parallel, we are supporting progress towards completion of the proposed offer by UPS. We anticipate discussing the proposed offer with our shareholders during an Extraordinary Shareholders Meeting to be held in 3Q12.’
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2012 outlook and aims:
- Mixed economic conditions in Europe and lower Asia-Europe trading volumes expected to persist
- In Europe & MEA, indirect and fixed cost reduction programmes and commercial initiatives in place to alleviate negative impact trading conditions
- Asia Pacific 1Q12 trends expected to continue; exposure to fixed intercontinental air capacity has been reduced as of 2Q12, with further reductions being investigated
- Americas to benefit from better results in Brazil
- Indirect cost savings programme launched in May 2011 to be completed this year
- Timing of implementation of certain long-term projects that are part of 2012-2013 fixed-cost savings programme temporarily adjusted in light of the proposed UPS offer
- Capital expenditures and working capital targets in line with medium-term aims
Medium-term outlook and aims:
- EMEA revenue to grow organically and through new initiatives in adjacent market segments, with an operating margin increasing to 10-11%, assuming normal economic conditions
- Positive contributions from other operating segments
- Capital expenditure of around 3% of total revenue and trade working capital around 10% of total revenue
- Effective tax rate trending towards 31-33%
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