FedEx is no doubt as happy as TNT with the latter’s fourth-quarter and year-end financial reports, showing the company back in the black. The formerly struggling TNT managed a tidy €19 million profit in Q4 2015, compared with a €137 million loss in the same period in 2014.
For the full year, revenue increased by 3.5 percent over 2014, to €6.9 billion, with operating income of €38 million, compared to an operating loss of €86 million in the previous year. The improved performance, however, wasn’t enough deliver a profit, net loss was EUR50 million compared with a EUR195 million loss in the previous year.
Revenue from TNT’s small and medium-sized clients grew by 5.1 percent, year-over-year, with its international Europe business giving the carrier the biggest boost, gaining momentum each quarter.
During the year, TNT invested €309 million to modernize its transport and IT infrastructure, compared to €190 million in the prior year. TNT launched new road and air connections, expanded network coverage and improved on-time delivery performance globally.
By region, adjusted operating income for TNT’s Europe segment was also up to €69 million for FY 2015, more than doubling the €30 million reported in 2014. In the Asia, Middle East and Africa region, operating income jumped to €64 million from 50 million in 2014. However domestic operating income still took a €14 million loss, more than the €8 million loss in 2014.
For the fourth quarter, which CEO Tex Gunning said illustrated the acceleration of growth, revenue was €1.86 billion, up 4.1 percent over €1.79 billion in Q4 2014. Operating income rose from a €53 million loss in 2014 to positive territory of €57 million in 2015.
“Service has improved notably, as evidenced by record customer experience scores,” Gunning said. “We are quickly making up for 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 toward 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.”