The integrated parcel delivery company TNT Express said Monday its third quarter operating income rose 43.8 percent year-on-year to 46 million euros ($59 million).
Revenue in the quarter rose 2.1 percent to 1.8 billion euros.
The increase in income came predominantly from a reduction in losses from TNT’s Americas region, where operating losses were sliced from 30 million euros in the third quarter of 2011 to 22 million euros this year. Income from TNT's home European market fell 13 percent to 60 million euros.
“TNT Express showed a mixed performance this quarter, with lower results in Europe but improvements in Asia Pacific,” said interim Chief Executive Officer Bernard Bot. “In a challenging economic environment, we benefited from our diversified product portfolio and superior customer service. Customer growth was also good, with notable additional business won in the automotive, industrial and high-tech sectors. Finally, we continue to contain costs and shed loss-making activities to support our operating results. Our cash performance was also strong.”
TNT said conditions in its Europe and Asia-Pacific regions will continue to be challenging, with efforts underway to control costs in Europe and the Middle East/Africa regions to offset “negative yield trend.”
The company also said it will benefit in year-on-year Asia-Pacific comparisons from reduced exposure to fixed intercontinental air capacity and improved performance from its domestic businesses there.
TNT has accepted an acquisition bid from UPS for $6.5 billion
, which is currently being considered by the European Commission. - Eric Johnson