TNT Express reported first quarter profits of EUR16 million (US$21 million) compared with a EUR106 million loss in the same period last year, as the Dutch logistics company is set for takeover by U.S. competitor UPS.
Reported revenues for the first quarter of the year increased by 1.3 percent to EUR1.82 billion from EUR1.79 billion despite trading difficulties in its Europe, Middle East, and Africa business. Adjusted revenues at constant FX was EUR1.78 billion, down -0.9 percent year-on-year.
Reported operating income for the first quarter was EUR37 million from a loss of EUR79 million; adjusted operating income at constant FX and excluding one-offs was EUR34 million from EUR50 million year-on-year.
Adjusted operating margin declined to 1.9 percent from 2.8 percent last year, the company said in a May 2, 2012 media statement.
TNT, Europe’s second largest package delivery company, said it experienced mixed economic conditions in Europe and slowing Asia-Europe trading volumes in the first three months of the year.
CEO Marie-Christine Lombard said: “The first quarter of 2012 has been challenging, given the ongoing sluggish business environment. In Europe, cost savings and commercial initiatives are being pursued to mitigate revenue pressure. Profitability in Asia-Pacific improved, despite weak intercontinental demand. Americas also improved, with better results in Brazil.”
She added that they are “supporting progress towards completion of the proposed offer by UPS.” The company will hold its extraordinary shareholders meeting in the third quarter of the year where it anticipates discussing the proposed offer with its shareholders.
