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TNT turns loss into profit
[ February 16, 2016 // Chris ]TNT’s management hailed a 4.1% improvement in fourth quarter 2015 revenues of €1,861 million, – compared to an operating loss of €53 million in the same period of 2014 – and insisted that the express operator’s takeover by rival FedEx was still on course for the first half of this year. At a press conference to announce the results, chief financial officer Maarten Jan de Vries played down reports that the takeover deal had run into problems due to opposition by UPS in Brazil. “We are not worried, we are really confident despite that our competitors say.”
At the conference, it was also revealed that TNT would take steps to ensure that its activities in Iran complied with US law following its takeover by FedEx. While UN sanctions against Iran have been lifted, a trade embargo between the US is still in place and could still be in place at the time of the takeover.
TNT added that, excluding one-off charges,its adjusted operating income almost doubled from a year earlier to €96 million. Profitability was supported by revenue growth and cost reductions.
Chief executive officer, Tex Gunning, said: “We are quickly making up for the lost ground in operational excellence by accelerating capital expenditure and outsourcing our Global Business Services and IT infrastructure. We expect further year-on-year improvements in adjusted operating income in full year 2016. 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.”