Tag: Courier/Express/Parcels

TNT says Q1 broadly in line with outlook

Posted by | Apr 11, 2008 | |

TNT NV’s first-quarter business trends were broadly in line with its annual outlook, the company said on Friday, in contrast with U.S. rivals which have cut their earnings forecasts.

Volume growth in the express delivery division in the first quarter was in line with that achieved in the previous quarter, Europe’s second-biggest mail company said in a statement ahead of a shareholder meeting. The unit makes up 60 percent of annual sales.

U.S. rival UPS lowered its quarterly earnings outlook on Tuesday, blaming worsening U.S. economic conditions and high fuel costs.

Last month, FedEx Corp gave a low outlook for its current quarter, citing the same factors, after reporting a 7 percent fall in quarterly earnings.

TNT shares were 1.6 percent lower at 24 euros by 1431 GMT, outperforming a 2.2 percent drop in the DJ Stoxx industrial goods and services index.

But the company’s outlook might change if the European economy slows, Chief Executive Peter Bakker told shareholders at the meeting.

It said operating income for express will be affected by Easter, which fell in March this year, but the impact should be reversed in the second quarter.

TNT is targeting high single-digit organic sales growth and low double-digit growth in its 2008 operating margin for the domestic and international express delivery business, excluding emerging markets.

The mail operation, TNT’s other major business, also grew in line with the outlook provided in February, when the company released 2007 results.

TNT has guided for a low single-digit percentage organic sales rise for mail this year, with a targeted operating margin of around 16.5 percent.

TNT, which is seeking to expand its business in Germany to offset domestic market share loss, warned it may withdraw from one of the region’s three biggest markets if it loses a court case against hefty minimum wages for postmen there.

Read More

TNT invests Euro 100 million to capture freight opportunities between Southeast Asia, Europe and China

Posted by | Apr 11, 2008 | |

TNT announced it will invest Euro 100 million over the coming 5 years to strengthen its network coverage, connectivity and infrastructure. TNT aims to build a leadership position by leveraging on the soaring demand for freight express services between Southeast Asia, China and Europe. This demand is mainly driven by customers in the high-tech, equipment and machinery and healthcare sectors that are increasingly moving large volumes of high-value goods between Southeast Asia, China and Europe.

Commenting on the inaugural landing of TNT’s Boeing 747-400 ER Freighter in Singapore, James McCormac, Chief Operating Officer of TNT’s express division, said, “Our strategic objective is to build a leadership position in domestic, intra-regional and selected intercontinental express flows in the emerging Asian region. TNT’s volumes between China and Europe have grown over 20 per cent in 2007, and we’re certain that the stop in Singapore will further accelerate this volume growth.”

With Singapore as its Southeast Asian hub, TNT’s connectivity between Europe, Southeast Asia and China will further be enhanced to tap into significant trade flows between these regions. According to a study by TNT, Greater China is one of Southeast Asia’s largest trade partners, representing some 24 per cent of total express volumes transported by air. This is followed by Europe representing 20 per cent, with trade within Southeast Asia accounting for 11 per cent. Within Southeast Asia’s air trade, the high-tech sector alone accounts for over 76 per cent of total trade value.

Read More

TNT keeps on moving with GBP 6.5m stationery deal

Posted by | Apr 11, 2008 | |

TNT has secured a substantial three-year deal with JA Magson in excess of GBP 6.5m and involves the collection of thousands of items each week for delivery throughout the UK and Ireland, providing next day and 48-hour services for more than 18,000 delivery locations.

With TNT co-ordinating daily deliveries to this number of retail and distribution outlets nationwide, the company is harnessing its expertise and channeling it into providing tailored services for a mind-boggling range of goods seen on the High Street.

Eddie Calland, National Sales Manager, Corporate Development, said: “This is an attractive new market for us with customers who distribute high volumes of items to the High Street which is an area where we can obviously excel.

Eddie explained that the service will be masterminded from TNT’s Leeds depot.

Leeds Depot General Manager Kerry Miller has been instrumental in the negotiations to bring about the three-year deal with York-based Magson.

JA Magson Finance Director, Neil Mason added: “With TNT’s national coverage and expertise, they can offer us the capability to provide our customers exactly what they want – a ‘next day’ service coupled with a full customer accessible track and trace facility to ensure the customer is kept in the loop from order to delivery.

Read More

US online retail spending to rise – study

Posted by | Apr 10, 2008 | |

A new study from Forrester Research predicts that despite the current economic gloom, online retail spending by US consumers will rise by 17% this year to USD 204 billion.

The study of 125 retailers for Shop.org, the online arm of the National Retail Federation, found apparel is likely to be the largest online sales category in 2008, accounting for an expected USD 26.6 billion. This is followed by computers at USD 23.9 billion, and autos at USD 19.3 billion.

But Scott Silverman, executive director, Shop.org, warns that despite the bullish predictions, e-retailers are still vulnerable to the economic situation.

“From higher shipping costs to changes in consumer shopping habits, online retailers are not immune to the current economic climate,” he says.

However the report does say that growth in the online retail market will slow as the number of people new to the Internet begins to wane and retailers struggle to decide whether to invest in strategies that retain current customers or those that attract new ones. According to the study, online retailers allocate 53% of their marketing budgets to customer acquisition and 21% to retention.

The research also suggests that online retailers will increasingly look to social networks to attract new customers. Of those questioned, 65% say they will increasingly focus on social network advertising and 55% will turn to widgets.

But Forrester strikes a note of caution, claiming social networks have been considered more effective for brand-building and less proven for driving revenue or sales conversion. Therefore retailers need to continue investments in proven techniques like e-mail marketing and free shipping promotions to drive sales.

Search engine marketing continues to be the most effective way to reach new customers, accounting for 35% of online sales. But one technique that looks to be losing favour is the offer free shipping to customers. While 85% of online retailers say they used some shipping promotions in the past, just 35% say they will focus more on these types of offers in 2008.

Read More

UPS & FedEx eye overseas growth

Posted by | Apr 10, 2008 | |

With the U.S. economy waning and its outlook for recovery uncertain, the shipping industry, too, is eyeing overseas growth opportunities to offset tough times at home.

But while bellwethers like UPS Inc. and FedEx Corp. seek to reduce their dependency on the wobbly domestic economy, they still cannot afford to stop focusing on their core U.S. operations, analysts say.

UPS cut its first-quarter earnings forecast because of higher fuel costs, a weakening U.S. economy and reduced domestic package volume.

Last month, reported a 6 percent drop in third-quarter earnings and said a slow economy and high fuel prices are expected to continue cutting into profits. It predicted fourth-quarter earnings would be lower than a year ago and its earnings growth would be limited in the next fiscal year.

The company said that by 2010, it intends to increase to 40 percent the percentage of its operating income that comes from its international and supply chain/freight operations. That compares to 32 percent last year.

In turn, it intends to reduce from 68 percent to 60 percent the percentage of its operating income that comes from U.S. domestic operations. UPS is eyeing China, India and Europe for growth opportunities.

FedEx, meanwhile, said last month that it is depending heavily on its ongoing growth overseas. Sales at the company’s cargo airline saw double-digit growth recently primarily because of growth in international express shipments.

But analysts who follow UPS and FedEx said the shippers will still need to rely on their home market in years to come.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest