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TNT loses US$54 million in the third quarter
NETHERLANDS-headquartered delivery giant TNT has recorded a third quarter net loss of EUR49 million (US$54.07 million), compared with a EUR51 million loss for the same period a year earlier.
Operating loss for the period amounted to EUR27 million. The company attributed the operating loss to pricing pressures, transition and project costs, and costs to enhance service capabilities, reported Air Cargo News.
Third quarter revenues rose by 2.3 year on year to EUR1.7 billion driven by increases in its small and medium enterprise (SME) business, particularly for its International Europe segment.
During the third quarter progress was made in FedEx's proposed buyout of the firm.
TNT chief executive Tex Gunning was quoted as saying: "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.
"2015 is a transition year for TNT. We expect to see year-on-year margin improvements from 2016 onwards."
Operating loss for the period amounted to EUR27 million. The company attributed the operating loss to pricing pressures, transition and project costs, and costs to enhance service capabilities, reported Air Cargo News.
Third quarter revenues rose by 2.3 year on year to EUR1.7 billion driven by increases in its small and medium enterprise (SME) business, particularly for its International Europe segment.
During the third quarter progress was made in FedEx's proposed buyout of the firm.
TNT chief executive Tex Gunning was quoted as saying: "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.
"2015 is a transition year for TNT. We expect to see year-on-year margin improvements from 2016 onwards."
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