Mode shifting appears to be a factor in TNT results. Air volumes were down 10% in September but road transport showed slight growth.
Operational revenues at TNT grew 5.9% with good performance in international economy and special services products and good performance in “emerging platforms.”
Operating income was down 21.5% in constant currency terms (neutralizing the volatile exchange rates). Cost saving programs are being “aggressively implemented.”
Mail continued strong operational revenue growth and emerging mail and parcels were in line with expectations, according to TNT.
Premium air volumes in Europe continue to feel strong economic pressure.
“As we had already highlighted in our October 16 trading update the conditions in our European Express business have significantly worsened in September and the first weeks of October. Air volumes in September were down an unprecedented 10%, while road volumes were showing low growth. We expect this pressure on volumes to persist at least in the current quarter,” said Peter Bakker, ceo.
“On the positive side the Mail business has performed in line with our outlook,” he continued. “Also, we refinanced our capital requirements in August, ahead of the deepening of the financial crisis in September and October. This, coupled with our robust cash flow, leaves us on a solid financial footing.”Bakker added, “In these times management focus on efficient operations is even more essential. Our master plans in Mail continue successfully, we are aggressively implementing the announced € 125 million cost optimization program in Express, we focus on improving air network efficiencies and we target all other cost areas for savings as well.”