Investor Relations
Outlook
TNT's 2008 Outlook
Economic conditions in Europe seem to have softened during the latter part of this quarter. This had a sudden impact on premium volumes in Express in June, which again improved somewhat into July. TNT assumes the economy to remain under some pressure for the rest of the year, with continued slowdown in premium express products (air) partially compensated by growth in economy (road) products.
The outlook for the year 2008 is reaffirmed, although at the low end of the indicated range and barring any further worsening of recent trading conditions.
Express is expected to show a high single digit organic revenue growth in International & Domestic, with a low double digit operating margin. The Express Emerging platforms are expected to deliver organic revenue growth in the high teens, with a low single digit operating margin.
Mail is expected to show a low single digit organic revenue increase overall, with an operating margin around 16.5%. Emerging Mail & Parcels (excluding EMN Germany), as part of Mail, is expected to achieve a low double digit organic revenue increase, with a high mid single digit operating margin.
Other information:
TNT’s outlook is based on constant 2007 exchange rates.
The overall Express outlook excludes any charges associated with the announced savings programme.
The overall Mail outlook includes expectations and assumptions on revenue development and operating margins for EMN Germany on an ongoing basis, which, due to the current legal and business environment, are more uncertain than usual.
The overall Mail margin outlook excludes possible further restructuring charges in the context of Master plans in the Netherlands and decisions on the future of EMN Germany.
TNT expects non-allocated costs to stay at around € 35 million for the year.
| Organic revenue growth | Operating margin | |
|---|---|---|
| Express International & Domestic | High single digit | Low double digit |
| Express Emerging Platforms* | High teens | Low single digit |
| Mail total | Low single digit | Around 16.5% |
| Emerging Mail + Parcels** (excluding EMN Germany) | Low double digit | High mid single digit |
- Express outlook excludes any charges associated with announced cost savings programme
- Mail outlook excludes possible further restructuring charges Mail Netherlands
- EMN Germany ongoing basis
- Exchange rates at average 2007
- Non-allocated at ~€ 35 million
* Apac, India, China, LAM, MEA, Russia, Turkey
** EMN + Parcel activities in the Benelux