Dutch delivery service TNT Express issues profit warning

GMT 15:18 2014 Wednesday ,24 September

Arab Today, arab today Dutch delivery service TNT Express issues profit warning

TNT Express chief executive Marie-Christine
The Hague - AFP

TNT Express shares slumped almost 11 percent on Wednesday after the Dutch courier company warned it is unlikely to meet its full-year targets due to weak growth in Europe and the US.
TNT said it was "no longer prudent to maintain our 2015 guidance -- which assumed an economic growth rate in Europe of between 2 and 3 percent -- of an adjusted operating margin of 8 percent" for Europe and the Americas.
The news sent its shares tumbling 10.5 percent to 5.03 euros on the Amsterdam stock exchange.
TNT also warned it was making a provision of 50 million euros ($64 million) to pay a fine resulting from a French probe into alleged anti-competitive behaviour.
Concerns have been mounting about weak economic growth in the EU, with a key survey on Tuesday showing business activity in the 18-nation eurozone slowed this month.
"Overall trading conditions in Europe have deteriorated further and competitive pressures have increased," the company said in a statement.
TNT said in July it was under investigation by the French Competition Authorities (FCA) and that it had cooperated with the probe involving several French and foreign delivery companies since it began in 2010.
"TNT is now entering into a settlement with the FCA with respect to the investigation of alleged anti-competitive behaviour in the French parcels delivery sector," the courier said.
The size of the fine is not expected to be known before the end of 2015 and so TNT "will be making a financial provision of 50 million euros in the third quarter".
TNT Express operates in more than 200 countries and maintains a leading role in the road freight network in Europe. It currently employs some 65,000 people.


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