Segments

  • Europe Main: Results flat reflecting uneven economic growth and competitive pressures
  • Europe Other & Americas: Profit growth supported by solid yield development
  • Pacific: Market remained difficult, but targeted cost initiatives improved profitability
  • AMEA: Strong across-the-board performance
  • Brazil Domestic: Recovery continued and moved into profit after first quarter breakeven

Outlook Strategy

  • 2Q14 restructuring-related charges and restructuring-related implementation cost €74m
  • Ongoing investment in Liège Eurohub and road infrastructure
  • New segment reporting to be implemented at 4Q14, with full reconciliation
  • Capital Markets Day confirmed for 18th of February 2015

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Commenting on this quarter's developments, Tex Gunning, CEO said:

'"This quarter we were pleased to report adjusted net income up by 36.7% and deliver profit improvements in Brazil, AMEA and certain parts of Europe. However we are experiencing uneven economic growth across Western Europe and see competitive pressures in some of these countries continuing.

Cost savings and restructuring remain on track and "Outlook 2016" initiatives are now being implemented globally across all TNT's business units. 

We are organising a Capital Markets Day on 18 February 2015, where the new management Board will present detailed plans for the new operating units (Domestic, International Europe and International AMEA).

With the new management Board in place and the intrinsic strength and commitment of our people, I have great confidence we can build a sustainable future for TNT, meeting the expectations of our shareholders, customers and employees."
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2014 guidance:

  • Assuming stable or improving external conditions:

    -   Combined Europe Main and Europe Other & Americas operating results
        to show positive development

-    Asia Middle East & Africa and Brazil Domestic operating resultsto be
        significantly better than prior year

-   Pacific operating resultsto remain under pressure

-   Europe investments in marketing and brand increases by €15-20m

-   Unallocated around €(30)m

  • Business as usual capex (excluding Outlook investments) up to around 3% of revenues

Year-to-date performance commentary

Year to date, adjusted revenue decreased by 3.2% but restated for disposal China Domestic and sale Dutch TNT Fashion Business was up by + 0.8%.

Adjusted operating income increased by €52m (64.2%). Year-to-date adjusted operating income saw growth in Europe Main and the continuation of improvements in Europe Other & Americas, AMEA and Brazil Domestic.

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