TNT reports double digit volume contraction
Dutch express and mail company, TNT has cut the outlook for its key express delivery unit for the second time as it feels the bite of the economic slowdown. “Volumes, overall and in particular in the premium express market in Europe, continue to decrease and are now well below levels of the comparable period in […]
December 1, 2008
TNT is seeing year-on-year volume declines of 20 per cent in air express and 5 per cent in road express. CEO Peter Bakker said customers were shifting their demand from air to road services and that the economic environment was depressing volumes overall.
Bakker said the full-year results for its express unit, which accounts for 60 per cent of its sales, will likely come in somewhat below the outlook given during its third-quarter results. It did not issue a 2009 outlook.
“These are tough times for our customers and our industry,” he said. “Although TNT is of course not satisfied with its performance in 2008, this was heavily impacted by unprecedented sharply deteriorating economic conditions.
“For 2009, TNT is aggressively implementing cost savings and preparing for a longer phase of economic recession. TNT is confident that as a result of its short-term focus on adapting its cost structures, and strengthening its medium term strategic opportunities, an even stronger company will emerge.