LONDON — TNT Express, the Dutch parcel delivery company being acquired by its larger U.S. rival FedEx, almost halved its third-quarter operating loss but remained under pressure from economic volatility in Australia, Brazil and China.
The operating loss shrank to 27 million euros ($29.7 million) in the three months to end-September from 51 million euros a year earlier as revenue edged up 2.3 percent to 1.67 billion euros against 1.63 billion euros last time. The bottom line loss narrowed to 49 million euros from 55 million euros.
TNT said it faced lower yields in France due to competitive pressures and higher delivery costs. Competitive pressures in its domestic Australian market were compounded by the drop in commodity markets and the cost of modernizing infrastructure.
International revenues were affected by the decline in Chinese exports, particularly to Europe, which account for more than 70 percent of TNT’s turnover in greater China.
Nine-month revenues grew 3.3 percent to 5.05 billion euros from 4.89 billion euros and the operating loss decreased to 19 million euros from 33 million euros.
“2015 is a transition year for TNT,” said CEO Tex Gunning. “We expect to see year-over-year margin improvement from 2016 onwards.”
He said “substantial progress” has been made in the recommended acquisition of TNT by FedEx, and that the deal would be closed in the first half of 2016.
TNT and FedEx last week said European Union competition regulators will not challenge the 4.4 billion euro acquisition in response to media reports that the deal had run into trouble.
Combining TNT’s 12 percent European market share with FedEx’s five percent will create the continent’s second-largest delivery company behind Deutsche Post’s DHL Express at 19 percent and ahead of UPS at 16 percent.
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