HOOFDORP, the Netherlands: As part of a new 'Move More By Road' initiative, TNT is to invest €185 million in its European road network over the next four years in a bid to improve performance, productivity and service.
The investment will cover automation equipment, facilities, planning tools and trailers for hubs in France, Germany, the UK, Benelux, Spain, Poland and Sweden.
The announcement coincided with the company reporting nine-month income of €4.9 billion – down year-on-year by 4.9 percent; a 52.5 percent increase in operating income to €183 million; and a 101.7 percent drop in net cash from operations to minus €35 million for the period. Profit after tax fell from minus €153 million to minus €55 million.
Revenue for the third quarter ending September 30 was €1.64 billion, down 2.0 percent from last year, and profit for the period fell from €3 million to minus €56 million. Despite a €50 million provision against an expected fine by the French Competition Commission, the company said it ended the quarter with €414 million in net cash – up from €346 in Q3 2013.
Commenting on the third quarter TNT CEO Tex Gunning (front, right) said that despite limited visibility on European trading conditions, every company segment made a positive contribution "apart from Europe Other & Americas where performance was broadly flat". He said TNT continued to make progress on its 'Deliver!' cost- saving program that had saved €28m during the quarter and is expected to save €120 million by the end of 2014.
As part of its 'Outlook' productivity improvement strategy that now includes the road network investment, in September the company announced a re-branding exercise from 'Yes We Can' to 'The People Network'. Gunning explained: "We have a clear strategy to focus on our greatest strengths: our people, their human approach to serving customers and our unique network. Customers are not barcodes and we are not robots. We all relate to what drives our customers: business growth with a personal touch. Taking time to understand what customers really need distinguishes us from others."