TNT profits rise to £462 million

Source: Supply Chain Digital

Date :06/08/2007 11:15:32

TNT’s operating profits have risen 2.6 percent to £462 million in the first half on sales up 9.6 percent to £3.5 billion.

The company is now fixed on its mail and express parcel operations following the sale of its logistics and freight businesses.

TNT is looking for sales growth in the express business of around 15 percent, with a balance of organic and acquisition growth producing an operating margin of nine to 10 percent.

In the first half of the year European Mail Networks has led TNT to increase its full year total revenue growth expectation for EMN from around 25 percent to the range 30 percent to 35 percent.

In July TNT acquired a 25.1 percent stake in regional mail delivery company Nordwest-Mail in Bremen, giving it access to more than 400,000 households in the Greater Bremen area, as well as to the complete network of the Citipost alliance, the largest alternative mail delivery service in north-west Germany.

Mario Frusch, chief executive TNT Post Germany, said: “Citipost Bremen is a partner which understands the delivery business inside out and which is a powerful regional brand.

"We now can serve the 'last mile for addressed mail to customers in the Bremen area. This brings us close to our goal of increasing TNT Post's household coverage from currently more than 90 percent to 100 percent by the end of this year.”

August 6 2007