TNT reported third quarter revenues of 1,674m euros, up 2.3 per cent year-on-year, and a negative operating income of 27m euros, compared with a negative operating income of 51m euros for the third quarter of 2014.
Currency comparable revenue growth was 1.8 per cent. Underlying revenue growth, excluding currency effects and the negative impact of lower fuel surcharges, was 3.6 per cent, reflecting higher revenues from SMEs, particularly in the International Europe segment. The economic volatility in Australia, China and Brazil weighed on TNT’s revenues and overall performance in these parts of the world. Operating income includes net one-off charges of 40m euros, including restructuring charges of 23m euros.
TNT’s adjusted operating income was 13m euros in the third quarter, compared with 46m euros for the same period of last year. Operating result was affected by pricing pressures, Outlook-related transition and project costs (8m euros), and costs to enhance service capabilities. TNT experienced lower margins in France in particular.
Capital expenditures increased to 62m euros (or 3.7 per cent of revenues) in the third quarter of 2015 from 41m euros (2.5 per cent of revenues) in the same period of 2014. During the quarter, TNT successfully opened three new automated sorting facilities in Madrid, Swindon and Eindhoven, while upgrading existing ones as part of its Perfect Depot project.
Tex Gunning, TNT’s Chief Executive Officer, said: “Substantial progress has been made in the recommended acquisition of TNT by FedEx: TNT shareholders have approved the resolutions of the Extraordinary General Meeting. We have been informed by the European Commission that it will not issue a Statement of Objections. We continue to support FedEx in obtaining all necessary approvals and expect the transaction to close in the first half of 2016. At the same time we remain focused on executing our Outlook strategy to transform and turn TNT around. Revenue growth from SMEs continued in the third quarter. Service performance and customer satisfaction further improved. Our investments in IT and productivity are on track. As said, time is needed for these profound transformations to influence the bottom line. 2015 is a transition year for TNT. We expect to see year-on-year margin improvements from 2016 onwards.”