TNT reports Q2 revenues of €1.76bn
TNT has reported second-quarter (Q2) revenues of €1,757m, up 6.2% year-on-year, and an operating income of €19m, compared with €3m in the second quarter of 2014. In a statement issued today (27 July), the company said that, after adjustment for positive currency effects and the negative impact of lower fuel surcharges, the underlying revenue growth for the period was 4.1%, driven by the continued growth of revenues from SMEs.
Operating income for Q2 2015 includes €22m of restructuring and other charges. Adjusted operating income was €41m in the second quarter, €29m below last year.
“Profitability was affected by IT transition and Outlook project costs (€15m), costs to introduce new services and facilities, as well as pricing pressures,” according to the company statement.
Capital expenditures rose to €96m in Q2, compared with €37m in the same period of last year.
Investment continued apace in Q2. In addition to developing its Liege facility, TNT said that it is completing new sorting facilities in Madrid, Eindhoven, Swindon (UK), Brisbane and Melbourne, all of which “will enter operations during the second half of this year”.
Commenting on the Q2 results, Tex Gunning, TNT’s Chief Executive Officer, said: “TNT’s turnaround is progressing well under our Outlook strategy. Service levels and customer satisfaction scores further improved. We are achieving good growth in the SME customer segment after years of decline. Operational excellence investments in infrastructure and Global Business Services are being implemented according to plan and we continue to attract top industry talent.
“We have guided that we expect 2015 to be a transition year in terms of bottom-line performance, as we continue to invest in the transformation of TNT. As for the macro economic backdrop, we have experienced some positive developments in Western Europe, but we remain cautious given the economic volatility in China, Brazil, Australia and Greece.”
Gunning then focused on the big event on TNT’s horizon: “During the quarter, FedEx announced its intention to acquire TNT. The management team believes this is a very positive development for all our shareholders.”
