Post, parcel and logistics firm TNT has reported revenues of 1.9bn (US$2.1bn) for the fourth quarter (Q4) of 2015, up 4.1% compared to the previous year. The company also reported operating income of 57m (US$63m) for the same period, compared to an operating loss of 53m (US$59m) in 2014.
TNT has attributed the improvement to higher overall parcel volumes, particularly from SMEs. Revenue growth in Europe managed to offset any decreases in Brazil and China.
Excluding one-off charges, TNT’s adjusted operating income almost doubled from a year earlier to 96m (US$107m). Profitability was supported by revenue growth and successful efforts to reduce indirect costs.
The company’s net cash position at the end of December 2015 was 231m (US$257m) compared to 449m (US$500m) one year earlier. The decrease reflects the investments made as part of the company’s Outlook strategy.
Tex Gunning, CEO for TNT, said, “I am very pleased with our Q4 2015 results. The implementation of the Outlook strategy is gaining momentum. We saw growth accelerating, particularly in our International Europe express business, and we realized a significant improvement in operating income. Service has improved noticeably, as evidenced by record customer experience scores. We are quickly making up for the lost ground in operational excellence by accelerating capital expenditure and outsourcing our Global Business Services and IT infrastructure.
“We expect further year-on-year improvements in adjusted operating income in full year 2016. Good progress has also been made towards closing of the FedEx offer to acquire TNT. Pre-integration planning is well on track and we are all looking forward to a bright future with FedEx.”
February 18, 2016
