Operational excellence in networks
27 July 2006 - 12:20 CET
Highlights:
- Strong operating results from continuing activities
- A record 8.9% full year margin in Express segment
- Mail achieves 19.5% marging, full year
- Dividend up 10.5%, from 57 cents to 63 cents
- Good progress on 'Focus on networks' strategy
- Asian network expansion; Hoau agreement signed today
- Logistics exit on track; divison stable during sale process
- € 1 billion share repurchase - € 583 million completed by 22 February 2006
CEO Peter Bakker:
"TNT ended the year with very satisfying results from its network businesses: a record margin in Express with strong top-line growth and Mail achieving a great margin, thanks to its relentless pursuit of operational efficiency. It was also good to see next day delivery quality push ahead a little, to almost 97%.
In December, we launched the 'Focus' strategy aimed at exploiting TNT's operational excellence in network management. The Logistics exit is on track and the business remains stable, testifying to the professionalism of its people.
I am pleased that the tax investigations have reached conclusions, allowing us to remove uncertainty by announcing the estimated financial impact of the investigations. We take no additional accruals and the estimated contingent tax liability is € 150 million to € 550 million."
For the complete press release, see our parent company's web site http://group.tnt.com.
