TNT Reports Earnings; Logistics Shows Loss

TNT reported its express operations achieved an all-time high margin of 10.3% in the fourth quarter of 2005 and mail delivered an 18.8% operating margin for the same period.

After announcing in December 2005 it would realign the operations, TNT has reported its logistics results as part of “discontinued operations.” Its new focus on “network strategies” appears to be delivering on its promise. TNT’s Express and Mail operations reached €10.1 billion in revenues with a net profit of €772 million.

TNT reported the loss from discontinued operations for the full year was €111 million. This was after charging €63 of net financial expense which included €51 million payable to group companies included in continuing operations (e.g. Mail and Express) and €12 million due to third parties. Other factors affecting TNT Logistics results included sale of its French operations. That sale carried a cost of €102 million, €18 in restructuring charges and €3 million of asset impairment. The French operations generated €212 million in revenues.

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