TNT reports €57m 4Q operating income
TNT has reported fourth quarter (Q4) 2015 revenues of €1,861m, up 4.1% year-on-year, and an operating income of €57m compared to an operating loss of €53m in the same period of 2014. The 4Q operating income absorbed net one-off charges of €39m, including restructuring charges of €11m. The company pointed that when these one-off charges are excluded, its adjusted operating income of €96m was almost double what it achieved in Q4 2014.
Commenting on the results, Tex Gunning, TNT’s Chief Executive Officer, said: “I am very pleased with our Q4 2015 results. The implementation of the Outlook strategy is gaining momentum. We saw growth accelerating, particularly in our International Europe express business, and we realised a significant improvement in operating income.”
Gunning added: “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.”
Focusing on the different business areas, TNT reported that revenues for the International Europe segment
rose by 9.1% to €789m, with all operating units in Europe posting revenue growth during the quarter.
The segment’s adjusted operating income more than doubled year-on-year to €52m.
Revenues for the International AMEA segment increased 4.7% year-on-year to €270m, supported by positive currency effects.
Underlying revenue growth, adjusted for currency effects, working day effect and the negative impact of lower fuel surcharges, was -1.6%.
The International AMEA segment’s adjusted operating income increased by €5m (+23.8%) to €26m.
Revenues in the Domestics segment were €690m, which was flat with the fourth quarter of 2014, as revenue growth in Europe balanced the decrease in Brazil and Australia.
TNT said that, despite the flat revenues, the Domestics segment’s adjusted operating income increased by €23m to €31m “as a result of cost reductions”.
With regard to the full year 2015 figures, TNT saw its revenues increase by 3.5% to €6,914m, with an operating income of €38m compared to an operating loss of €86m in 2014. Adjusted operating income decreased by €58m to €151m, but TNT said that “most of the decrease is explained by Outlook-related transition and projects costs, which totaled close to €45m”.
