TNT preps for loss of express division
TNT has completed the legal and organizational restructuring required for the decoupling of its express and mail businesses. The separation proposal will be put up for approval at the group’s AGM in May.
Mail revenues shrank by 0.1 percent to €1.21 billion ($1.67 billion) in 2010, reflecting a 9 percent fall in the volume of addressed mail in the Netherlands. The slowdown was exacerbated in the fourth quarter by the first nationwide strikes in more than 25 years, immediately followed by weeks of severe weather.
TNT’s express business saw volumes move back ahead of pre-crisis levels, and underlying operating income increased by 32 percent.
“In Express, 2010 has been the year in which volumes recovered to pre-crisis levels, although the mix and pricing environment has been challenging throughout. 2010 has been a year in which TNT’s strategy in emerging markets has continued to make good progress,” CEO Peter Bakker said. “In China, both day-definite domestic and intercontinental growth has been good. We are disappointed with the integration related one-off costs in Brazil, but our strong market position in South America remains a true asset for the future.”
TNT forecasts a “mostly stable economic environment” in 2011 and will focus on yield improvement in its express operations. Its revenue target is €7.3-7.5 billion ($10.05-10.32 billion), generating operating income of €400-420 million ($551-578 million).