PostNL, which owns part of integrator TNT Express, reported a loss of 170 million euros during fiscal-year 2013 after a profit of 731 million euros in 2012, according to a consolidated income statement issued Monday.
Nevertheless, the company said it had “good progress” in 2013, with increases in cash operating income and 426 million euros ($586 million) of debt reduction. On Dec. 5, it announced it wanted to sell part of its stake in TNT express in order to help drive down debt. The sale was to generate 507 million euros and would leave the company with a 14.8-percent share of TNT Express.
In a statement, Chief Executive Officer Herna Verhagen said the company had a solid year, despite a challenging environment. She noted that the restructuring of mail in the Netherlands announced last February resulted in more savings than expected.
“2013 was a successful year, which we ended with a more solid financial foundation, more engaged employees and proof of our ability to adapt to the challenging market conditions,” she stated.
Verhagen said that adjustments to the company’s mail operations is its focus in order to maintain a profit.
“This is necessary, as we expect mail volume to decline by between 9 percent and 12 percent in the coming years. The decline in mail volume will be offset by a combination of price increases and cost savings.”
She also said the company will continue to expand in the area of parcels amid a growing e-commerce market. Financial goals for 2014 and beyond also include greater cash operating income.
“In 2014, we aim to achieve underlying cash operating income of 180-220 million euros, which is another important step towards our updated 2015 targets and a clear step up from the reported 141 million euros in 2013,” she said. “We are committed to achieve profitable growth of Parcels and International and manage mail in the Netherlands for sustainable delivery of cash with the aim to restore cash dividend in 2016.”