TNT Express experiencing mixed conditions in Q1 2012
TNT Express has released a trading update for Q1 2012. The company statement said that "since the start of 2012, TNT Express has continued to experience mixed economic conditions in Europe and slowing Asia-Europe trading volumes."
In its Europe and MEA (Middle East and Africa) region, pricing pressure and a decline in international express volumes have negatively impacted the company’s operating results. In response, TNT Express has initiated a fixed-cost optimisation programme, with the aim of reducing fixed costs by €150m by the end of 2013.
Results in Asia Pacific, while under pressure because of lower Asia volumes, have benefited from the strong performance of the Australian operations. The company announced that its exposure to fixed intercontinental air capacity will be reduced as of 2Q12 through the recently announced code-share and block-space agreement signed with Emirates Sky Cargo.
In the Americas region, the company announced that its performance in 2012 has been in line with the prior year, with Brazil performing according to plan.
Following UPS’s announced acquisition of the company, TNT Express also announced it has withdrawn the proposal to appoint Marcel Smits and Sjoerd Van Keulen as additional members of the Supervisory Board.