TNT says it must “move more by road”

TNT financial 1Q14Netherlands-based express company TNT reported first-quarter 2014 net income of €1 million, down from €144 million in the first quarter of 2013, as revenue declined 6.6% to €1.61 billion. Reported operating income for the quarter was down 92.2% to €17 million, from €219 million in 1Q13. However, the reported figures include a variety of one-time charges and benefits that make comparison difficult. Principal among these is the payment to TNT by UPS of a €200 million termination fee in last year’s quarter when the US company’s acquisition attempt was prevented by the EU’s competition authority. As shown in the chart at right, adjusting for the one-time items, and for foreign exchange effects, total revenue was down just 2.8%, and operating income in fact more than doubled to €51 million. Following the sale of its domestic China operations, and the failure to sell its domestic Brazil operations, TNT now organizes its business into five reporting segments.

Looking ahead, TNT said it expected results for the rest of 2014 to be similar to the first quarter, with improving results in all segments except Pacific. The company initiated a new strategy: “Outlook,” to succeed the expiring “Deliver.” The Outlook plan is made up of 10 “initiatives,” the first of which will be of particular interest to readers of Cargo Facts. It is called “Move More by Road.”

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