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Commenting on the fourth quarter, Tex Gunning, CEO said:
‘The building blocks of TNT’s Outlook strategy have been put 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. Our focus on small and medium enterprises is gaining traction and we are making progress in service reliability measured by on-time performance. The results of TNT’s customer experience survey were the highest in years.
Comprehensive productivity and efficiency plans have been developed and are in full execution mode. The strengthening of TNT’s European road and air networks, to deliver both express and economy express services to more destinations, is also progressing well.
In 2014, we had to take significant Outlook-related restructuring provisions, one-off charges and valuation allowances. These non-recurring charges testify to the scale of the transformation that needs to happen and to the determination of the new management team to do what it takes to transform and turn TNT around. In 2014, we did not yet realise quality revenue growth and profitability. We are still in a stage of improving the quality of our revenue base and winning back customers that were lost over the last few years. With service quality improving in our unique European road network and competitive air network, we should be able to reverse any negative trends and achieve profitable growth.
The Outlook strategy was announced in 2014. A new management team of experienced industry leaders and corporate turnaround professionals was appointed with a clear brief to create a sustainable future for TNT. Our confidence in realising the full benefits of Outlook by 2018-19 is based on the Orange spirit of TNT’s people, the loyalty of TNT’s customers and our unique European network with excellent connections to the rest of the world. 2015 will be a year of transition and we will achieve year on year improvements from 2016 onwards.
We are very much looking forward to updating the market fully at our Capital Markets Day tomorrow.’
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