TNT Express reported a 6.6-percent, year-over-year decline in revenues during the third quarter, finishing the period at 1.62 billion euro ($2.23 billion) on a 1.3-percent decline in operating expenses.
The integrator is more than a year into its Deliver!
program and has made significant progress in reconfiguring its business. The sale of its domestic China business is expected to be completed in the fourth quarter, and the sale of its domestic Brazilian business is ongoing. Officials are also looking into unloading TNT Express’ Dutch fashion piece. The company’s 747s are still being unloaded, but the process is being slowed by the soft air cargo market.
The program will be complete by 2015, and TNT Express expects to see a 220 million euro improvement from the portfoilio changes above in conjunction with IT changes and some corporate realignment.
Officials reported some pressure on yields in Europe, but said rates were staying somewhat consistent, while in the Americas, results are improving. The company’s turnaround program in Brazil is continuing, and in the Middle Eastern region, results are higher than the previous period. Pressure is coming from the Pacific region.
"We have made excellent progress this quarter towards realizing our Deliver!
objectives. We have achieved important milestones for our overhead and operational improvement projects, and are seeing some first tangible benefits from the measures taken," TNT Express Chief Executive Officer Tex Gunning said in a statement. "The Deliver!
program is gaining further momentum and will contribute to our performance going forward.
While some segments are showing better performance, overall trading conditions remain demanding and visibility limited. Our ultimate goal is to make TNT Express robust for the long term. We are therefore developing further initiatives to reinforce our market and operational positions."