TNT saw operating profit (EBIT) rise 2.6 per cent to 681m euros in the first half on sales up 9.6 per cent to 5.3bn euros. The business is now focused on its mail and express parcel operations following the sale of its logistics and freight businesses.
In the express business it is now looking for sales growth of around 15 per cent, with a balance of organic and acquisition growth producing an operating margin of nine to 10 per cent.
Strong revenue growth from the European Mail Networks in the first half year, has led TNT to increase its full year total revenue growth expectation for EMN from around 25 per cent to the range 30 per cent to 35 per cent. “The accelerated growth is accompanied by accelerated start up costs, particularly in UK packets and parcels. As a result we slightly revise our low-single-digit operating margin outlook for EMN to around break-even.”