2006 week 18
TNT in the news
TNT NV & We complete Fashion BV (IDCF) deal
02 May 2006
Global logistics company TNT N.V. and WE International B.V. (WE) announced that they have completed the sale of ID Company Fashion B.V. (IDCF). Parties agreed not to disclose financial details. TNT decided to divest IDCF as the company’s activities are non-core to TNT.
IDCF is one of the leading suppliers of corporate wear in the Netherlands. The company is increasingly internationally oriented and currently services around 20 corporate clients in the Netherlands and abroad.
TNT will continue its existing relationship with IDCF as its main corporate wear supplier. The combination of IDCF and the corporate wear activities of WE will provide a solid basis for future growth and profitability. Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance.
TNT focuses strategy will make us build on that track record to strive to become the first pan-European mail company. TNT N.V. provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. TNT design, implement and operate complex supply chain solutions on a national, regional and global scale for medium to large enterprises.
Source: www.fibre2fashion.com
TNT Q1 beats expectations, sale of Logistics division 'in progress' Source:
May 3, 2006
AMSTERDAM (AFX) - TNT NV's first-quarter results came in at the top end of market expectations almost across the board, and the company said the sale of its Logistics division is 'in progress'.
It also announced a new restructuring drive to reduce overhead costs by 75 mln eur in total. Part of the reduction is to be realised this year, and the remainder in 2007, though effects on personnel are expected to be 'minor', TNT said.
Net profit came in at 205 mln eur, up from 193 mln in the previous year and within the 197-217 mln eur expected by analysts polled by AFX News.
Sales were 2.647 bln eur, up from the restated 2.430 bln which excludes the results from the Logistics division, which is up for sale. Sales were above the 2.543-2.585 bln expected by analysts.
Operating profit was 329 mln eur, up from 288 mln eur last year and above the 301 mln eur seen by analysts. Earnings per share came in at 0.47 eur, above the 0.42 eur reported last year and at the top end of the estimated 0.44-0.47.
The Mail division reported 1.013 bln eur in sales, up from 973 mln eur last year, and TNT said the stronger result was because of a positive price-product mix, which absorbed the impact of volume declines and the costs associated with various cost reduction schemes. The Mail divisions operating margin was 21.9 pct, down from 22.1 in the previous year but higher than the 18.2 pct estimated by analysts.
The Express division also witnessed a sales increase, to 1.443 bln eur from 1.269 bln. The results included TNT's Spanish TG+ acquisition for the first time, and TNT said the Italy, Germany and Benelux markets spearheaded growth, while in the Rest of World, Australia showed a 'marked improvement'. Freight Management's sales expanded to 198 mln eur, from 183 mln. The Logistics division, reported as a discontinued operation in the results, saw sales rise to 875 mln eur from 865 mln, while operating losses deepened to 11 mln eur, from 8 mln in the same quarter last year.
Source: AFX www.afxnews.com
TNT to buy back 2.7 mln shares for hedging purposes
May 3, 2006
AMSTERDAM (AFX) - TNT NV said it is to buy back 2.7 mln shares for hedging purposes. The company said the hedge is necessary to meet obligations under the existing share and share options plans. TNT said the buyback is to start today and end after six weeks. The mail and logistics company said it has hired ABN Amro to execute the purchase programme.
Source: AFX www.afxnews.com