TNT Express was upbeat about its first quarter results despite the fact that operating profit slipped to €17 million. In fact, it said that on an adjusted basis operating profit rose from €21 million to €51 million.
The 2013 operating profit figure was inflated by a €200m termination payment from UPS following the collapse of its takeover.
Sales were down 6.6 per cent to €1.68bn – mainly the result of foreign exchange movements.
The bright spot was a recovery in the European businesses. CEO Tex Gunning said: ”TNT Express’ performance improved this quarter. I am particularly pleased with the profit recovery in our core European segments and in Asia Middle East & Africa as a result of the restructuring initiatives taken since last year. The Brazilian team deserves special mention, with excellent progress made on the turnaround resulting in a break-even result for the quarter.
“To realise our 2015 ambitions, we target further improvements in our top and bottom line through the roll out of our Outlook strategy. As significant progress has been made in restructuring our businesses, we are now increasingly focusing on growth in our target segments.”
It said that for the rest of 2014, trading conditions remained volatile and uncertain and there was a risk of continued negative foreign exchange effects.
Assuming continued improving external trend, it expected to show positive developments in the combined Europe Main and Europe Other & Americas operating results, while Asia Middle East & Africa and Brazil Domestic operating results were expected to be significantly better than prior year. However, Pacific operating results were expected to remain under pressure.