TNT, which is the subject of a takeover bid from FedEx, made an operating loss of €11m in the first quarter despite a 1.3 per cent rise in turnover to €1.6 billion.
CEO Tex Gunning said: “Good progress is being made with the execution of the Outlook strategy. Service performance and revenues from SMEs further improved, supported by on-going investments in infrastructure and IT.
“During the FedEx offer process, we will continue to focus on our customers and operational efficiency. The first quarter results were impacted by transition costs associated with the Outlook strategy. Our guidance is unchanged: we expect 2015 to be a challenging year of transition, followed by year-on-year improvements from 2016 onwards.”
Revenue in the International Europe segment fell 1.3 per cent year-on-year, reflecting weaker sales in large Western Europe markets, partly offset by growth in most other markets. Revenues from large accounts declined, but the segment again achieved higher revenues from SMEs. Consignment volumes and revenue per consignment were essentially flat compared with the same quarter of last year. Adjusted operating income fell by €23m to €8m, partly driven by costs related to executing the Outlook strategy (€6m ).
In the International AMEA segment, revenue was up 17.1 per cent to €233m.
Revenue per consignment rose 7.3 per cent year-on-year, driven by increased average daily weights (8.3 per cent), a result from the growth in express freight, economy parcels and economy freight shipments. Adjusted operating income increased by €4m to €9m.
And revenue was up 4.4 per cent in the Domestics segment to €621m. The UK Domestic unit improved during the quarter. The Pacific unit’s revenues decreased year on year.
TNT delivered 4.1 per cent more consignments per day than in the first quarter of 2014. However, revenue per consignment declined 2.6 per cent due to pricing pressures and decline in fuel surcharge.
However, adjusted operating income fell by €19m to a loss of €4m, reflecting the pressure on yields, especially in France and Australia, as well as €4m of operating costs related to the execution of the Outlook strategy.