TNT Express has unveiled a strategy to improve its performance and financial results as both group turnover and operating profit continue to decline.
The strategy, called ‘Outlook’, was revealed in its results for the final quarter of 2013 today and will integrate its Deliver profit improvement plan, which was launched last year.
TNT hopes to move more by road by expanding its European road network. It aims to do this by targeting customers in the automotive, industrial, healthcare, and technology sectors, and working with more SMEs.
It also intends to restructure in the second half of this year, with one management team for its European international express business, and another management team for domestic business in the UK, France and Italy. Asia, Middle East and Africa will also be managed by one team, and Brazil, Chile and the Pacific will be under another.
CEO Tex Gunning said: “We have taken the time to carefully assess the company’s competitive position, service to customers, productivity and organisational effectiveness.
“The conclusions are clear. We have distinct areas of strengths but also need to make substantial improvements.”
A new management board has also been appointed to lead the restructured company.
Turnaround specialist Marco van Kalleveen joins as MD domestics and chief transformation officer; former Europe Other and Americas MD Chris Goossens becomes MD customer experience; and global HR director Steven Scheers becomes chief people officer. DHL’s Martin Södergård and Ian Clough join as MD network operations and MD international Europe.
TNT’s financial results for 2013 showed a 4.7% drop in turnover to €6.6bn from €7bn in 2012.
Adjusted turnover in its Europe Main division fell 2.7% to €3.3bn in 2013, compared to the previous year, which it attributed to the loss of a contract in its UK fashion business.
Adjusted operating profit in the division also dropped to €41m from €45m in 2012, despite better trading in the UK, Benelux and Germany.
TNT UK recently revealed plans to integrate its fashion business into the wider TNT network.
It has also added 69 Iveco Eurocargos to its urban distribution fleet.
