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Brazil and Australia bright spots for TNT Express

By control on May 4, 2012

For the first quarter of 2012, TNT Express reported that revenues rose by 1.3 percent, while adjusted revenues declined by 0.9 percent, on a slight decline out of the Asia-Pacific and an uncertain European economic environment. Activity in the Asia-Pacific region, however, could have been worse, if not for strong volumes from Australia. Activity in Brazil boosted results from the Americas.

In Europe, TNT experienced a 1.1-percent, year-over-year, revenue decline. This certainly would have been worse if not for positive volume growth and yield contraction. Even though the year started off on a slower note, TNT saw an increase in all product categories as the year wore on. Asia-Pacific revenues declined by 4.8 percent due to lower international activity and TNT's shift from LTL activities in China. A large portion of the decline was due to TNT's movement away from activity in India.

Officials at TNT Express expect the current conditions to persist, and they are taking actions such as reducing capacity in the Asia-Pacific region. Activity in the Americas will pick up, however, propelled by movements in Brazil.

The deal between UPS and TNT Express is proceeding as planned and should close in the third quarter. TNT's goals for the rest of the year includes an organic 10 percent-to-11 percent increase in EMEA revenue and positive contributions from TNT's other operating segments.

"The first quarter of 2012 has been challenging, given the ongoing sluggish business environment," TNT Express CEO Marie-Christine Lombard said in a statement. "In Europe, cost savings and commercial initiatives are being pursued to mitigate revenue pressure. Profitability in Asia-Pacific improved, despite weak intercontinental demand. Americas also improved, with better results in Brazil. In parallel, we are supporting progress towards completion of the proposed offer by UPS."

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