TNT Express NV (TNTEY.PK) said the company anticipates its third-quarter adjusted operating income will be materially lower than in the same period of last year. The company said the economic volatility in Brazil, China and Australia weighed on its performance. In the Domestics segment, TNT faced competitive pressures in Australia, compounded by the drop in commodity markets, and the ongoing costs of modernising the Australian infrastructure. The Domestics segment's performance was also affected by substantially lower margins in TNT's French operations.
TNT said its management team remains focused on executing the company's three to five-year turnaround and transformation strategy Outlook, as presented at the Capital Markets Day on 18 February. The company said, during the third quarter, it made progress in implementing Outlook and continued to achieve underlying revenue growth. TNT expects to achieve year on year improvements from 2016 onwards and to realise the full benefits of Outlook from 2018-2019.
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