Pricing pressure and a decline in international express volumes in the first quarter have affected operating results at TNT Express, the company said in a trading update.
Since the start of 2012, TNT Express has continued to experience mixed economic conditions in Europe and slowing Asia-Europe trading volumes.
The company, which is the subject of a takeover bid by UPS, has initiated a fixed-cost optimisation programme, with the aim of reducing fixed costs by 150m euros by the end of 2013.
Results in Asia-Pacific, while under pressure because of lower Asia-volumes, have benefited from the strong performance of the Australian operations.
TNT Express’ exposure to fixed intercontinental air capacity will be reduced as of 2Q12 through the code-share and block-space agreement signed with Emirates Sky Cargo. Americas’ performance to date has been in line with the prior year, with Brazil performing according to plan.
The company has its annual meeting in 11th April. It said that in view of the UPS offer the supervisory board had decided not to change its composition for the time being.
“In consultation with the two candidates, the Supervisory Board has withdrawn the proposal to appoint Mr Marcel Smits and Mr Sjoerd Van Keulen as additional members of the Supervisory Board.”