PostNL's Q4 net income up nearly 24% year-over-year to €161M on revenues of €1.17B, down 4%; results boosted by company's stake in TNT Express, partial reversal impairment of €98M
February 27, 2012
– Highlights Q4 2011
Solid performance in all segments continued
Underlying revenues down 4.1% to €1,169 million (organic -0.2%)
Underlying cash operating income €99 million (Q4 2010: €133 million)
Net debt position €1,002 million as at 31 December 2011
Stake in TNT Express: partial reversal impairment of €98 million
Coverage ratio main pension fund 99.8%*, below minimum required level (around 104%)
Harry Koorstra, CEO of PostNL, states: ”This quarter, we continued to see positive developments in our operations. Addressed mail volumes showed a decline of 5.1% in the quarter, and looking at the full year, addressed mail volumes declined by 7.2%, a lower decline than expected. Volumes in Parcels increased, especially in December, resulting in good growth in revenues and results. International still saw growth in the Italy and UK businesses, although we are beginning to see some effects of the economic turbulence.
The financial markets remained volatile. The share price of TNT Express increased during the last quarter of 2011, leading to a partial reversal of €98 million of the previous impairment.
The coverage ratio of our main pension fund is around 100%* at the end of Q4, still below the minimum required level. We have invited the pension funds to discuss the top up payments as PostNL disputes the necessity of the top up payments that are invoiced to us. At the same time, we are negotiating with the trade unions to achieve necessary adjustments to the collective labour agreement, as the current pension arrangements are not sustainable.
We continue to manage our company so that we are prepared for future changes. The complex implementation of Master plan III in our Dutch mail organisation will continue and will show first results in 2012. We maintain our focus on the effects of liberalisation on both price and mix. In our Parcels and International businesses, we work on commercial initiatives to add profitable volumes.”
Note: underlying figures are at constant currency and exclude one-offs as detailed on page 5
* Including the first top up invoice from the pension fund (disputed by PostNL)
PostNL processes 8.7 billion addressed postal items (including 106 million parcels) each year and delivers to addresses in the Benelux, Germany, the UK and Italy. PostNL’s main business is mail, parcels and e-commerce. The company also provides services in the area of data and document management, direct marketing and fulfilment. PostNL employs some 65.500 people. In 2011 the company generated a turnover of nearly 4.3 billion euros.
Industry Intelligence Editor’s Note: In an omitted table, the company reported Q4 net sales of €1.17 billion, net earnings of €161 million. For the same period a year ago, the company reported net sales of €1.22 billion, net earnings of €130 million.
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