TNT posts double-digit growth

DUBAI - Double digit growth in the Middle East operations of TNT Express has helped sustain earnings for the company's parent company TPG in the first quarter of this year. Despite regional difficulties, the company's business continued to expand in the expresses and mail sectors, helping offset decline in margins in the logistics sector.

By A Staff Reporter

Published: Wed 30 Apr 2003, 11:48 AM

Last updated: Wed 1 Apr 2015, 7:45 PM

TPG's net income in the first quarter of this year, excluding an increase in pension payments, was up 2.8 per cent to 147 million euros compared with the same quarter of last year. Revenue grew 0.7 per cent, though at constant exchange rates the revenue was actually 5.7 per cent higher.

TPG's express business, of which TNT Middle East forms part, produced earnings before interest, tax and amortisation of 52 million euros, up from 41 million euros in the same period of last year. Peter Bakker, TPG's chief executive officer, said: "Mail and express continue to perform strongly. There are a number of key issues to tackle in logistics and we have launched an urgent transformation programme to address the margin erosion. Provided there is no further deterioration in global economic conditions, TPG is well positioned to progress in line with the targets we have set."

TNT's Gulf operations remained unaffected by the iraqi conflict. Bryan Moulds, TNT's Gulf general sales and marketing manager, said: "TNT in the Middle East continued to contribute to these results because of the deployed infrastructure and extensive contingency plans."

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