TNT has reduced its losses to 14 million euros ($15.7 million) in the first quarter of 2016 despite revenue dipping 2.2 per cent to just under 1.6 billion euros.
Along with reducing losses by 26.3 per cent from 19 million euros in the first quarter of 2015, TNT reduced its operating loss by 90.9 per cent to one million euros, partly helped by the charges related to the FedEx takeover offer.
TNT chief executive officer, Tex Gunning says: “In the first quarter, TNT again delivered solid underlying revenue growth. Adjusted operating income improved despite fewer working days and continued investments in the Outlook strategy. The Outlook strategy is on track and delivers good growth from SME customers.”
“Meanwhile, we spent significant time and effort towards the completion and preparation of the intended acquisition by FedEx, which we expect to complete in the first half of 2016.”
TNT’s international European business made a loss of two million euros as operating income in North America fell in anticipation of the FedEx takeover. Revenue growth and cost management meant international AMEA operating income increased by 66.7 per cent to 15 million euros.