06 October 2011 at 8:00 CET -Hoofddorp, the Netherlands
While trading was relatively resilient in EMEA, with overall steady volume development, worsening product mix negatively impacted the 3Q11 operating performance. Cost control and efficiency gains helped mitigate revenue pressure.
Asia Pacific profitability suffered from continuing weak Asia-Europe demand, leading to sub-optimal capacity utilisation in a soft pricing environment. The company continues actively to optimise its exposure to intercontinental capacity. Domestic China saw an improved product mix but this was offset by general and wage cost inflation. The 2013 deadline remains.
In Americas, Brazil’s operational quality continued to improve but revenue was not sufficient to cover the past loss of major customers. Progress has been made towards the 2H12 turnaround deadline. There will be a value assessment in 4Q11.
The first phase of the indirect and overhead cost-reduction programme has been successfully implemented.
Revised 2011 aims
Given its challenging trading environment, TNT Express’ revised aims for the year are:
- Europe & MEA revenue to achieve muted growth, with an underlying operating margin of 8-9%
- Asia Pacific’s 2H11 operating result to continue 1H11 trend; focus on optimising intercontinental capacity exposure
- Americas’ continuing negative performance being addressed through a full range of corrective measures
- Other networks to perform somewhat below the prior year
- Cash flow to be supported by tight cash capex and working capital management
- Annualised ~€50m cost savings, with expected related charges and write-offs of €45-65m. Implementation is underway.
TNT Express’ medium-term aims are not changed.
The company will present its 3Q11 results on 31 October 2011.
About TNT Express
TNT Express, one of the world’s largest express delivery companies, moves 4.7 million parcels, documents, and pieces of freight every week to more than 200 countries. TNT Express operates air and road transportation networks in Europe, China, South America, the Asia-Pacific and the Middle East. The company employs 83,000 people and runs a fleet of about 30,000 road vehicles and 50 aircraft. It has more than 2,600 depots and sorting centres. TNT Express made €7.053 billion in revenue in 2010.
For more information and inquiries, please contact:
TNT Express Media Relations
Director External Communication
Phone: +31 88 393 9323
Mobile: +31 651 189 384