TNT has warned that its third quarter adjusted operating income will be materially lower than in the same period of last year.
In a trading update it said that during the third quarter, TNT made progress in implementing its Outlook transformation programme and continued to achieve underlying revenue growth. Customer satisfaction increased further, fuelled by service improvements and new services.
However, the economic volatility in Brazil, China and Australia weighed on TNT’s performance in these parts of the world. In its Domestics segment, TNT faced competitive pressures in Australia, compounded by the drop in commodity markets, and the on-going costs of modernising the company’s Australian infrastructure. The Domestics segment’s performance was also affected by substantially lower margins in TNT’s French operations.
The company is currently is the process of being acquired by FedEx, subject to EU approval.
It said: “As stated in February, 2015 is a challenging year of transition for TNT. TNT expects to achieve year on year improvements from 2016 onwards and to realise the full benefits of Outlook from 2018-2019.”