TNT Express has revealed a profit improvement plan between now and 2015 to “create a more focused, efficient and profitable TNT Express”.
The programme, called ‘Deliver!’, is expected to cost €150m (£ 128m))and aims to increase growth in its most profitable areas, reduce costs by €220m by 2015 and invest around €200m in infrastructure and IT.
It also plans to sell its domestic divisions in China and Brazil.
As a result, it hopes to see EMEA adjusted operating profit of around 8% along with a 2% growth in sales by the end of 2015.
TNT plans to focus on driving higher margin business by targeting SMEs, larger and heavier parcels and palletised freight, whilst increasing prices across its current services.
It aims to reduce costs by consolidating and creating shared service centres, concentrating hubs and depots within certain regions and increasing productivity by improving depot sort and load activities.
It also plans to reorganise its management structure so that regional units report directly to chief executive Tex Gunning, who will assume his new role on 1 June.
China sale
The firm also revealed that the sale of its businesses in China “is well underway” and has started preparing for the sale of its Brazilian business since losses for the division reduced in the first two months of 2013.
Interim chief executive Bernard Bot said: “Our business faces difficult market conditions and strategic challenges but we have a unique competitive proposition: an unrivalled European network, worldwide connections, an integrated range of services and recognised dedication to customers. Our updated strategy builds on these strengths.”
Around 4,000 jobs are expected to be effected by the profit improvement plan over the next three years.
