In 2007, TNT’s Express division earned revenues of €6,551 million.

The following tables set out the financial performance of TNT’s Express division for the past two years:

Download data as excel
Year ended at 31 December
Express financial overview 2007 variance % 20061
Total operating revenues 6,551 13.8 5,758
as % of total operating revenues TNT 59.5 57.2
Other income 9 125.0 4
Total operating expenses (5,961) (14.6) (5,202)
Total operating income 599 7.0 560
as % of express operating revenues 9.1 9.7
  • (in millions, except percentages)
  • 1 – Figures have been adjusted to reflect both the revised allocation of the non-allocated costs using actual incurred costs in 2007 as well as the transfer of Innight from Express to Other networks in 2007.
Download data as excel
Year ended at 31 December
Express operating revenues 2007 variance % 2006
Express Europe 1 4,969 6.8 4,652
Express Rest of the World 1,582 43.0 1,106
Total operating revenues 6,551 13.8 5,758
as % of total operating revenues TNT 59.5 57.2
  • (in millions, except percentages)
  • 1 – Comparative figures have been adjusted to reflect the transfer of Innight from Express to Other networks in 2007.
Download data as excel
Year ended at 31 December
Express operating statistics 2007 2006 2005
Number of consignments (in thousands) 228,199 198,171 179,275
Number of tons carried 7,390,779 4,500,683 3,520,109
Average of number of working days 252 251 253
Number of depots/hubs 2,331 1,195 882
Number of vehicles 1 26,760 22,001 19,747
Number of aircraft 1 47 44 43
  • 1 – A substantial number of the vehicles and aircraft are not owned by us but leased or subcontracted.

During 2007, TNT’s Express division realised higher operating revenues and improved earnings due to a strong performance in TNT’s international business attributable to TNT’s attractive product offering, disciplined pricing and an efficient sales process. The company continued to invest and integrate its newly acquired domestic platforms, which has resulted in a lower operating margin in 2007.

TNT continued to grow its profit, which was achieved through the implementation of standard commercial policies, cost control, including further optimisation of its networks, while maintaining service levels and the ongoing review of TNT’s revenue quality yield against cost inflation.

Business performance

In 2007, TNT’s Express business produced a strong performance driven by TNT’s international businesses and supported by a balanced customer portfolio, growth in TNT’s global accounts, improved network optimisation and careful cost management. Recent acquisitions performed in line with TNT’s expectations. The strong results (excluding the planned start-up costs of TNT’s recent acquisitions) show a continuation of previous years’ results which have seen continuous improvement in operating margin.

Express Europe

TNT has a more extensive Express delivery road network in Europe than any of its competitors. Through its integrated road and air networks, TNT is able to offer a range of fast and reliable Express delivery services in most European countries. With respect to TNT’s European network, TNT added its own airport connections to Bordeaux (France) and Larnaca (Cyprus) in January and March 2007 respectively. In October, TNT upgraded Gdansk (Poland) and Sofia (Bulgaria) from co-load operations to TNT own aircraft and moved from Nantes (France) to Rennes (France).

In 2004, TNT announced a €36 million investment plan for its Liège air hub, which is intended to improve transit times and increase the percentage of consignments delivered on time and in perfect condition. The project is progressing well with the new hub building being completed in November 2007. The total expenditure as at 31 December 2007 is €33 million. In 2007, TNT completed the extension at Duiven, the Netherlands, of the Integrated Direct Express Centre. This 5,000 square metre extension costing €7.9 million is to deal primarily with increased volumes from the increased China to Europe express flows.

Express Rest of the World

Express Rest of the World operates in a way similar to that of TNT’s Express Europe business line, but relies primarily on airlift by commercial passenger airlines for linehaul transportation links. However, in many of the countries TNT’s global Express services are augmented by domestic and regional express delivery services.

In China, 2007 has been a landmark year with several notable initiatives. In February, TNT started to fly its own 747 Extended Range Freighter between Shanghai and its European air hub in Liège. In March, TNT completed the acquisition of Huayu Hengye Logistics Company Limited (Hoau), one of the country’s largest and leading domestic road freight companies. TNT now operates the largest network of any of its competitors in China with over 1250 depots in the country. These are served by three international gateways and 56 domestic hubs.

In India, the integration of the acquired ARC India Private Ltd. (Speedage) business has progressed steadily. However, as expected significant investment in the service and infrastructure has been necessary in order to bring the operational performance closer to the expected levels. As a result, service performance of Speedage has steadily improved.

In South America, TNT established a market leadership position through the acquisition of Expresso Mercúrio S.A. (Mercúrio) on 10 January 2007. The company has performed beyond expectations in its first year. The transformation process has been very successful with no loss of major customers, high revenue growth, and financial results ahead of plan. Mercúrio employs 6,500 people across 104 locations and offers a comprehensive nationwide Express service in Brazil.