TNT Express predicts weaker volumes for Q4
TNT believe a combination of short term structural cost savings will provide a solid performance under expected challenging economic circumstances.
At its annual analyst conference TNT gave an update on the progress of its Focus on Networks strategy.
At the publication of its third quarter figures, TNT gave an outlook based on announced weaker volume assumptions for its Express business in Q4 2008. At that time, TNT also indicated that downward deviation from these assumptions would be possible given the unpredictable economic recessionary environment.
During the fourth quarter, significant further deterioration in market and business circumstances has occurred, as evidenced by frequent downward revision of many economic indicators during November. This situation has led to accelerated volume pressure beyond levels assumed for Q4 in European (premium air) Express flows and, more recently, also in International Economy/road volumes.
As a consequence, TNT Express overall volume development is now below the announced assumptions for the fourth quarter. Assuming a continuation of these volume developments for Express of November into December, TNT expects its full year 2008 Express results to come in somewhat below the outlook given at Q3.
The Mail business develops fully according to plan and its original forecast.
The current extremely volatile business environment is such that TNT will refrain from providing a full year 2009 outlook. TNT will in principle indicate its expectations on a quarterly basis, so for the first time at the publication of the full year 2008 figures on 16 February 2009 for Q1 2009. TNT is confident that the combination of its short term structural cost savings and operational leverage in its markets, will provide a solid performance under expected challenging economic circumstances.
