The 3Q11 revenue development reflects the combination of muted growth in EMEA, continuing growth in Asia Pacific and lower revenues in Americas (Brazil). Year on year, operating income was down mostly because of larger losses in Americas (Brazil) and in Asia-Pacific. Non-allocated was positive as a result of lower overhead and project-related costs, charge out to business units and beneficial phasing of certain costs.
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Commenting on the results, Marie-Christine Lombard, CEO said:
‘During the quarter, the performance in our European home market was resilient, benefiting from our broad product portfolio, customer focus and cost control. Our €50m indirect cost savings programme is proceeding to plan, with a significant share of the initiatives now implemented. Further operational improvements are being identified to secure profitability in an uncertain economic environment, such as reducing network costs and increasing the flexibility of our Asia-Europe capacity. Meanwhile, we are taking all measures to ensure our emerging platforms meet near-term deadlines.’
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2011 aims
Given its challenging trading environment, TNT Express’ aims for the year are:
- Europe & MEA revenue to achieve muted growth, with an underlying operating margin of 8-9%
- Asia Pacific’s 2H11 operating result to continue 1H11 trend; focus on optimising intercontinental capacity exposure
- Americas’ continuing negative performance being addressed through a full range of corrective measures
- Other networks to perform somewhat below the prior year
- Cash flow to be supported by tight cash capex and working capital management
- Annualised ~€50m cost savings, with expected related charges and write-offs of €45-65m. Implementation is underway.
