TPG: Reaching New Heights

3:26:19 PM | 7/8/2005

TPG N.V., the parent company of TNT, a global provider of mail, express and logistics services, has announced its 2004 second quarter results. Reflecting excellent execution in its operations, TPG's operating income was higher than in any second quarter in its history, growing 30.8 per cent year-on-year to Euro 331 million, whilst net income rose 31.5 per cent, to Euro 188 million on revenues of Euro 3,058 million.

With margins rising to 24.5 per cent, up from 21.9 per cent last year, the mail service has had a very strong quarter. This is attributable to the Cost Flexibility savings of Mail Netherlands and profitability of the international business. The express service has also had another strong quarter, with earnings from operations up 53 per cent.

Logistics earnings doubled compared to the second quarter of last year. The operating margin improved 0.7 percentage points, excluding the one-off Transformation through Standardisation (TtS) costs in 2003, to 4.3 per cent. This was the second consecutive quarter experiencing improvements in margins.

The positive developments of the first half have strengthened the Board of Management's confidence in the outlook for the whole year. In Mail, the full year operating margin estimate is around 21.5 per cent, up from the previous 20-21 per cent. Express enjoys is expected to enjoy the full year margin of 7.5 per cent to 8 per cent. Logistics performance, remains at around 4 per cent and continues to rely on the success of the TtS programme, which is on track for the first half.