Release Date: 02 February 2011
Release ID: 5123
Format and scope of results presentation to change
On 2 December, TNT announced its separation proposal. The internal legal and organisational separation is on track with completion of the announced restructurings on 1 January 2011.
As a result of the announced separation and the new legal scope of the TNT NV-Mail and Express entities, the way in which TNT NV will present its full year 2010 results (publication date 21 February 2011) and subsequent reports will change significantly.
On its corporate website (group.tnt.com), TNT has published a reconciliation of year-to-date Q3 2010 results from the ‘old’ to the ‘new’ format, both reported and underlying, to clarify the accounting-related changes. The most important changes are:
- Express reported under discontinued operations
- Difference in scope of Express and Mail
- Temporary adjustment due to the unwinding of certain profit pooling arrangements
- Temporary differences to Defined Benefit pension expense and actual payable pension contributions
The analysis of the year-to-date Q3 2010 underlying results, which corrects for various non-recurring items as assessed by management, shows that the allocation of Other networks and certain Non-allocated costs to Express leads to a limited change in the underlying Express results shown. Changes for Mail’s underlying operating income as a result of an equivalent analysis are also limited.
To explain the reporting changes, on 21 February 2011 TNT will publish a reconciliation from the ‘new’ Express and Mail group to previous, ‘old’ divisional Express and Mail results format.
Q4 2010 business update
TNT’s Express operations in Europe were negatively impacted by exceptionally adverse weather conditions in December. Notably, TNT’s Liege hub was shut for two days, with disruptions to service lasting longer. The estimated negative impact on Express divisional EBIT is €15 million. In Brazil, additional integration-related costs due to claims and provisions impacted Express divisional EBIT by an estimated €20 million. Adjusting for these two effects, Express expects full year 2010 divisional EBIT in line with previous indications. Currently, Express does not foresee a negative effect on the previously guided 2011 EBIT range of €420-440 million (excluding the allocation of around €20 million of central head office costs).
In Mail, the estimated impact of strikes and adverse weather conditions on Q4 2010 divisional EBIT is around €10 million. Full year 2010 performance is expected around prior indications. There have recently been some positive developments in the Dutch postal environment, including union members’ ratification of the agreement by which Mail can move forwards in implementing its restructuring programme.
Updated corporate calendar
- TNT full year 2010 results 21 February 2011
- Second interim dividend to replace the final dividend will be announced 21 February 2011, ex dividend 22 February 2011, payment in March
- TNT Q1 2011 results 2 May 2011
- Capital Markets Days: 3 May 2011 (Express) and 9 May 2011 (Mail)
- General Meeting of Shareholders 25 May 2011
59 Piccadilly Manchester M1 2AQ
Telephone: +44 (0)161 408 0542
Fax: +44 (0)870 432 1732
© The Adora Group Limited 2016 - Publishers of Freightnet