TNT chief warns of tough times ahead
17 / 02 / 2015
TNT Express made a €137m loss in the fourth quarter of 2014 and continues to face challenging trading conditions, said chief executive Tex Gunning.
The integrator, the subject of a failed takeover bid by UPS in 2013, blamed restructuring charges (€70m), goodwill impairments (€32m) and the costs of a re-launch (€22m) as it attempted to turn around its business in a difficult European market.
The company’s shares moved sharply lower in early trading on February 17 as the size of the company’s losses was digested by the market. The company also warned investors not to expect any significant improvement in its financial performance until 2016.
Nevertheless, insisted Gunning, the building blocks of TNT’s new Outlook rebuilding strategy were in place: “We are investing in our people, processes, IT systems and institutional competencies, whilst facing stiff competition and adverse trading conditions, particularly in Western Europe.”
He said that TNT Express was now focussing on small and medium sized business customers and had improved its on-time performance. Road and air express networks were also being strengthened to deliver more services to more destinations.
Netherlands-based TNT Express issued a profits warning in September, in the face of stiff competition and the costs of the failed UPS takeover.
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