TNT truck on the move

TNT Express saw a 13% drop in EMEA operating profit in the third quarter, despite a 3,2% turnover rise, due to “challenging trading conditions in Europe”.

The parcel firm, which last week received a statement of objections from the European Commission ahead of its acquisition by UPS, did not perform as well in its EMEA operations as it had during the same period in 2011, its Q3 trading results revealed.

Reported operating profit margins fell from 6.4% in Q3 2011 to 5.4% in the three-months ending 29 September 2012, with profit down from €69m (£55.6m)  in Q3 2011 to €60m (£48.4m) in the same period this year.

Reported turnover had increased by 3.2% from €1,083m (£873.7m)  in Q3 2011 to €1,118m (£902m) in the same period in 2012.

The firm reported a “positive volume development” in all of its parcels business, especially its international economy service, which it stated saw the highest growth. The quarter saw its average per day EMEA volumes up by 7.1%, taking its year-to-date average up 4% on last year’s figures.

Revenue per parcel, however, fell by 5.6% on last year’s figures, which the report states was due to pricing pressures and the “higher growth of lower-priced economy services”.

Interim chief executive Bernard Bot said: “TNT Express showed a mixed performance this quarter, with lower results in Europe. In a challenging economic environment, we benefited from our diversified product portfolio and superior customer service.”

The parcel carrier stated it was “confident that European competition clearance will be achieved” and intends to complete its merger with UPS in early 2013.