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TNT quarterly profit up 630pc to US$21.1 million as revenue rises 6.2pc

DUTCH logistics giant TNT posted a 630 per cent year-on-year second quarter operating profit increase to EUR19 million (US$21.1 million), drawn on revenues of EUR1.76 billion, which increased 6.2 per cent.

"TNT's turnaround is progressing well under our Outlook strategy," said chief executive Tex Gunning. 



The revenue increase was driven by continued growth from SMEs and supported by continued improvement of on-time delivery performance, said the TNT statement. 



International AMEA (Asia, Middle East and Africa) revenues rose 16.3 per cent in the second quarter to EUR257 million, as a result of stronger local currencies. 



"The International Europe segment transported more and heavier shipments in the second quarter, with a marginal decline in revenue per consignment (-0.4 per cent) due to lower fuel surcharges and some price pressures," it said. 



FedEx Corp made a US$4.8 billion offer to acquire TNT during the second quarter of 2015 that is still pending relevant regulatory approvals, which Mr Gunning regards as a positive development.



"Service levels and customer satisfaction scores further improved. We are achieving good growth in the SME customer segment after years of decline," he said. 



"We expect 2015 to be a transition year in terms of bottom-line performance, as we continue to invest in the transformation of TNT," he said. 



Capital expenditures increased to EUR96 million, representing 5.5 per cent of revenue in the second quarter, compared with EUR37 million (2.2 per cent of revenue) year on year.



The company said it continued to invest in sorting machinery, vehicles and IT, and is in the process of completing new sorting facilities in Madrid, Eindhoven, Swindon, Brisbane and Melbourne.



TNT's international AMEA segment saw adjusted operating income increased 16.7 per cent to EUR21 million. 



In its domestics segment, TNT posted an adjusted operating loss of EUR1 million, a drop of EUR21 million from the previous year's second quarter. 
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