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FedEx takeover on track as TNT swings back in black during fourth quarter

DUTCH express delivery major TNT was back in black in the fourth quarter, posting a net profit of EUR19 million (US$21.2 million) after a year-on-year net loss of EUR137 million the year before. Meanwhile, quarterly revenues were up 4.1 per cent to EUR1.9 billion.

TNT also narrowed its net loss in 2015 to EUR50 million from EUR195 million in 2014, drawn on revenues of EUR7 billion, which increased 3.5 per cent year on year.

TNT said revenues benefited from foreign currency effects and an extra working day, but were negatively affected by lower fuel surcharges.

Excluding these aspects, underlying revenue growth was three per cent on the back of improved volumes from small and medium sized businesses, up 9.5 per cent and European customers, which generated a 9.1 per cent increase in revenues on international shipments.

But declines were experienced in the Brazilian and Chinese markets, reported London's Air Cargo News.

Said TNT chief executive Tex Gunning: "We saw growth accelerating in our international Europe express business.

"Good progress has also been made towards closing of the FedEx offer to acquire TNT. Pre-integration planning is well on track and we are all looking forward to a bright future with FedEx," Mr Gunning said.

Two weeks ago, ASL Aviation agreed to purchase TNT Airways and Pan Air Lineas Aereas, which the express firm has agreed to sell as part of its takeover by FedEx, for an undisclosed sum.