TNT Express profits fall 34pc in Europe as Asia and Brazil make gains
2012 05 04
- Details
DUTCH quick delivery company TNT Express, being taken over by UPS, says it has experienced poor conditions in Europe, and a continued weakness on the Asia-Europe trade lane.
TNT Express' Asian operations, as a whole, performed well, supported by a good performance in Australia and on-plan performance for its domestic services in China, reports the UK' s Transport Intelligence. Its other previous problem area, Brazil, was also strengthened.
The company's Europe, Middle East and Africa (EMEA) division saw first quarter revenues fall 0.5 per cent to EUR1.1 billion (US$1.4 billion) year on year. Average kilorammes per day increased for international economy, but declined for both domestic and international express.
Asia Pacific revenues increased 2.6 per cent to EUR430 million and Americas revenues by 5.4 per cent to EUR118 million. EMEA profits plunged 34 per cent to EUR68 million as a result of negative yield and cost inflation. Although Asia Pacific remained in loss at EUR7 million, it improved marginally. The Americas' losses were reduced to EUR23 million from EUR152 million in the same quarter in 2011.
Said TNT chief executive Marie-Christine Lombard: "As announced at the beginning of the year, the first quarter of 2012 has been challenging, given the ongoing sluggish business environment. In Europe, cost savings and commercial initiatives are being pursued to mitigate revenue pressure. Profitability in Asia Pacific improved, despite weak inter-continental demand. Americas also improved, with better results in Brazil."
Management also stated that in the short term these weak conditions were likely to persist.
Source Shipping Gazette - Daily Shipping News
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