TNT Express, the Dutch parcel delivery company being taken over by UPS, said “mixed” economic conditions in Europe and slowing Asia-Europe trade volumes depressed its first quarter operating results.
The European, Middle East and African operations also are facing pricing pressure and a decline in international express shipments, the company said in a trading update.
Results in the Asia-Pacific region benefited from the strong performance of the Australian operations, even as they came under pressure from lower Asian volumes.
TNT said its performance in the Americas is in line with the previous year, while its troubled Brazilian unit is “performing according to plan.”
The company will reduce its exposure to fixed intercontinental air capacity in the second quarter through a code-share and block-space agreement signed with Emirates Sky Cargo in early March.
TNT said it has begun a cost-saving program designed to cut fixed costs by $201 million by the end of 2013.
TNT agreed in March to be acquired by UPS for $6.8 billion, creating a combined group with annual revenues of more than $60 billion.
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