TNT Express saw operating profit rise in Europe for the first nine months of the year but losses in the Americas and Asia resulted in a one million euro (£880,000) operating loss for the period.
The operating loss in the Americas rose to 227m euros (£199m) in the first nine months from 36m euros (£31.6m) in 2010. Asia Pacific produced a loss for the period of 34m euros (£30m) – down from a profit of 12m euros (£10.5m) in 2010. The EMEA region saw operating profit rise 2.2 per cent to 274m euros (£240.5m).
In the third quarter, TNT Express saw operating profit fall 13.5 per cent to 32m euros (£28m), despite a 1.3 per cent rise in sales to 1.8bn euros (£1.58bn).
It said the third quarter figures reflected a combination of muted growth in EMEA, continuing growth in Asia Pacific and lower revenues in Americas (Brazil). Year on year, operating income was down mostly because of larger losses in Americas (Brazil) and in Asia-Pacific.
The group said revenue development in the Americas was not yet sufficient to cover the past loss of major customers, though the pipeline of potential new clients was encouraging
Chief executive Marie-Christine Lombard said: “During the quarter, the performance in our European home market was resilient, benefiting from our broad product portfolio, customer focus and cost control.
“Our 50m euro (£44m) indirect cost savings programme is proceeding to plan, with a significant share of the initiatives now implemented. Further operational improvements are being identified to secure profitability in an uncertain economic environment, such as reducing network costs and increasing the flexibility of our Asia-Europe capacity. Meanwhile, we are taking all measures to ensure our emerging platforms meet near-term deadlines.”