TNT Express has reported a 67.4 per cent rise in operating profit to 77m euros in the second quarter of 2012, on sales up 1.7 per cent to 1.8bn euros.
The company said that volume growth had been good in Europe and MEA despite demanding economic conditions, but customers increasingly opted for non-premium products. The resulting negative product mix plus general price pressure were mitigated by cost-control initiatives.
In Asia Pacific, operating income improved even though international volumes declined. All units performed better, in particular Australia, China Domestic (Hoau) and India. Americas saw an improved performance from Brazil, though challenges remain.
The takeover of the TNT business by UPS is now expected to take place in the fourth quarter of 2012, following the decision by the European Commission to launch an in-depth investigation into the deal.
CEO Marie-Christine Lombard said: “The UPS offer was formally launched in June. Earlier this month, UPS and TNT Express announced that the European Commission’s assessment of the transaction would move to a phase II review as certain areas require more time to analyse. We expect to conclude the regulatory process by 4Q12. I want to re-emphasise the strong strategic rationale for the combination. An enhanced product portfolio, joint functional excellence and expanded geographic reach will create an unmatched combined service proposition for our customers.”