TNT reports improved results during first half of 2014

TNT Express has reported it cut its losses during the first six of the year; however its sales have decreased by up to 6% despite the company continuing its restructuring programme. The parcel delivery company’s latest batch of financial results show the first half of the year saw a fall in revenue to 3.27 billion Euros.

The company has since said its revenue was affected by currency and the use of China Domestic and the Dutch fashion logistics business and excluding those factors would have increased by almost 1%.

TNT Express has said that even though its revenues have been flat all round, there was some recovery in operating incomes within all European units with the exception of UK Domestic. The parcel delivery company also brands the Italian market as being “challenging”, despite its efforts to end unprofitable contracts.

Within some European areas and the Americas, TNT Express saw revenue up by 5.4% year-on-year in the first half up to 587 million Euros. However revenues were down throughout the Pacific area to 164 million Euros. Other areas that saw a drop include the Africa, Middle East and Asia segments, dropping revenue by 18%.

Tex Gunning, TNT Express Chief Executive, has said: “This quarter we were pleased to report adjusted net income up by 36.7% and deliver profit improvements in Brazil, AMEA and certain parts of Europe. However we are experiencing uneven economic growth across Western Europe and see competitive pressures in some of these countries continuing.”