TNT looks beyond the losses
Page 12
If you've noticed an error in this article please click here to report it so we can fix it.
by Karen Miles • Directors from TNT last week made light of the massive losses being sustained by the Austrailian group and chose to highlight UK profits and the long-term strength of the freight express giant.
A series of statements, aimed at silencing critics of TNT's financial stability, came as the group's latest worldwide finan
cial results showed an operating loss of £108m after tax and abnormal items for the year ending 30 June 1993.
Revenue was down 9% on the previous year to £2.3 billion and there will be no dividend paid to shareholders. But TNT Express (UK) managing director Alan Jones and Sydney-based directors stress the UK parcels and contract distribution business was "highly profitable".
Italy was also picked out for its success. It is understood that in the UK TNT made a pre-tax profit of 10% on a turnover of £250m, maintaining its profit throughout the last recession-hit year.
"We've reduced our unit cost through introducing a series of benchmai-king exercises and we've been handling more volume," says Jones. The company has also taken on 12% more customers.
Jones denies TNT as a whole is in a poor financial state. "The liquidity of the group is excellent and the underlying profitability is good. Most of the losses were incurred by abnormal items," he says.
Pre-tax operating profit was £6m, compared to the £32m lass of the previous year.
The company says there was a "significant improvement" in pre-tax operating profit in April, May and June as well as the return to profit at the Australian operation.
Revenue in Europe as a whole also increased, although profits were slightly lower.