TNT Express also reported a spike in net revenue during the second quarter, with net revenue surging 1.7 percent, year-over-year, to €1.83 billion. Unfortunately, this increase was partially offset by the company’s 1.8 percent, year-over-year, drop in adjusted revenue.
In a press release, TNT Express said that volume growth remained strong in the second quarter, despite financial woes in the Asia-Pacific and Europe. Still, customers increasingly selected non-premium goods, an issue that led TNT Express to undertake cost-cutting initiatives during the second quarter. (The company didn’t disclose details in the press release.)
Regionally, TNT Express saw growth in Australia, India and domestic China, although freight volumes lagged overall in the Asia-Pacific. Even so, the company reported a year-over-year hike in operating income in the Asia-Pacific during the second quarter. Such discrepancies were seen in other regions, as well.
“Despite an increasingly challenging economic environment, TNT Express was able to sustain profitability,” Company CEO Marie-Christine Lombard said in a statement. “In Europe, good volume growth underscores the strength of our diversified product portfolio.” Revenue-enhancement and cost-savings initiatives also buoyed profits, she said.
Lombard subsequently addressed UPS’ planned acquisition of TNT Express, a deal that is slated to close in the fourth quarter. Remarking on the “strong strategic rationale for the combination,” she expressed her high hopes for the merger. “An enhanced product portfolio, joint functional excellence and expanded geographic reach will create an unmatched combined service proposition for our customers,” Lombard said in a statement. “We look forward to discussing the offer with our shareholders at our upcoming [company meeting].”
The European Commission is also investigating the deal. On July 13, UPS announced in a press release that the EC’s review of the acquisition is expected to move to Phase ll, which can take up to 25 weeks to complete.
TNT Express also reported a spike in net revenue during the second quarter, with net revenue surging 1.7 percent, year-over-year, to €1.83 billion. Unfortunately, this increase was partially offset by the company’s 1.8 percent, year-over-year, drop in adjusted revenue.
In a press release, TNT Express said that volume growth remained strong in the second quarter, despite financial woes in the Asia-Pacific and Europe. Still, customers increasingly selected non-premium goods, an issue that led TNT Express to undertake cost-cutting initiatives during the second quarter. (The company didn’t disclose details in the press release.)
Regionally, TNT Express saw growth in Australia, India and domestic China, although freight volumes lagged overall in the Asia-Pacific. Even so, the company reported a year-over-year hike in operating income in the Asia-Pacific during the second quarter. Such discrepancies were seen in other regions, as well.
“Despite an increasingly challenging economic environment, TNT Express was able to sustain profitability,” Company CEO Marie-Christine Lombard said in a statement. “In Europe, good volume growth underscores the strength of our diversified product portfolio.” Revenue-enhancement and cost-savings initiatives also buoyed profits, she said.
Lombard subsequently addressed UPS’ planned acquisition of TNT Express, a deal that is slated to close in the fourth quarter. Remarking on the “strong strategic rationale for the combination,” she expressed her high hopes for the merger. “An enhanced product portfolio, joint functional excellence and expanded geographic reach will create an unmatched combined service proposition for our customers,” Lombard said in a statement. “We look forward to discussing the offer with our shareholders at our upcoming [company meeting].”
The European Commission is also investigating the deal. On July 13, UPS announced in a press release that the EC’s review of the acquisition is expected to move to Phase ll, which can take up to 25 weeks to complete.