Newly listed TNT Express reports stronger EMEA profitability

TNT Express has reported strong performance in the EMEA region, and says the company’s turnaround in Brazil is on track to meet the H2 2012 deadline despite short-term challenges.

TNT Express reported an operating income of €46 million (down 23.3% year-on-year), adjusted to €79 million (allowing for constant FX rates and excluding business and demerger related one-offs).

Reported revenues were up 0.9% to €1.8 billion, adjusted to €1.835 billion (up 2.9%).

Due to the strong performance in the EMEA, the aggregate adjusted operating income excluding the Americas region was +12%.

Asia Pacific adjusted revenues were up 9%, although profitability was held back by higher fuel and wage costs and volatile intercontinental volumes.

Brazil experienced significantly lower revenues, which is reflected in the Americas‘ loss. The company’s positioning in domestic emerging markets rests on continuing evidence that medium-term targets are achievable.

Commenting on the results, CEO Marie-Christine Lombard said: "Europe’s performance was once again solid and is evidence of the strength of our intra-European network, wide product offering and clear customer focus. Demand from Asia to Europe has been volatile, and we are optimising our capacity accordingly."

Lombard added that the turnaround in Brazil is on track, and although the short-term will be challenging, the company confirms its second-half 2012 deadline.