TNT Express posted a 25 percent year-over-year decline in third quarter profit on 7 percent lower revenue, prompting the Dutch parcel delivery company to intensify restructuring measures to confront difficult market conditions.
Net income dipped to €6 million (about US$8.3 million) in the third quarter of 2013, compared with €8 million in the third quarter of 2012, and revenue came in at €1.62 billion against €1.7 billion last time. Operating income plunged 85 percent to €9 million, versus €62 million.
The company said its cost-cutting program is on track, achieving €10 million in savings for the quarter with a forecast to hit €30 million for the full year.
“While some segments are showing better performance, overall trading conditions remain demanding and visibility limited,” said Tex Gunning, CEO of TNT Express, in a written statement. “Our ultimate goal is to make TNT Express robust for the long term. We are therefore developing further initiatives to reinforce our market and operational positions.”
TNT is restructuring its business after European Union regulators opposed a €5.16 billion takeover bid by UPS in January, including the sale its loss-making Brazilian unit and the domestic Chinese trucking operation. The company is now aiming to expand in Asia.