Gloomy outlook from TNT
Netherlands-based express and mail company, TNT has issued a pessimistic ‘trading statement’ prompted by deteriorating economic conditions in Europe and aimed at addressing concerns as to the company’s financial position. It pointed to what it said were “deteriorating trading conditions in TNT’s European Express business [which] have significantly worsened in September.” It added that, based […]
November 1, 2008
It pointed to what it said were “deteriorating trading conditions in TNT’s European Express business [which] have significantly worsened in September.” It added that, based on the volume patterns in the first two weeks of October, TNT expects this pressure to continue in the fourth quarter.
“Within a context of severe global volatility in financial markets, the recessionary trend in the economy in Europe has accelerated, causing the volumes in the premium International Express (air) product to decrease around 10 per cent.” The Economy Express volumes (road) have continued to grow, TNT noted, albeit well below levels of 2007.
In the Express Emerging markets, the growth and margins continue to develop in line with TNT’s outlook, it said in the statement. Likewise TNT’s Mail business is also developing according to the group’s outlook, producing a robust operating income and cash fl ow for 2008.
TNT was able to refinance its capital requirements in August, ahead of the deepening of the financial crisis in September/October. Combined with the strong cash fl ow, this puts TNT on a solid fi nancial footing going forward, it said.