TNT today reported revenues of €1,587 million and operating income of minus €1 million for the first quarter of 2016. Both were negatively influenced by fewer working days.

Underlying revenue growth, adjusted for currency effects, lower fuel surcharges and working-day effect,
was 4.2%. During the first three months of 2016, TNT continued to grow revenues from SMEs (+6.5%) and increased revenues in most countries, including China.

Operating income was minus €1 million, a €10 million improvement over the prior year. This result included one-off charges of €10 million, of which €4 million related to the FedEx offer.

Excluding one-off charges, TNT’s adjusted operating income was €9 million, up €8 million year-on-year.

TNT continued to execute its strategic Outlook initiatives, such as ‘Global Business Services’ and ‘Simplify & Transform’, and booked Outlook-related transition and project costs of €9 million during the quarter.

Capital expenditures amounted to €51 million (3.2% of revenues) compared to €78 million (4.8% of revenues) in the prior year. TNT finished the first quarter with a net cash position €145 million, compared to €330 million one year earlier.

Tex Gunning, TNT’s Chief Executive Officer, said: “In the first quarter, TNT again delivered solid underlying revenue growth. Adjusted operating income improved despite fewer working days and continued investments in the Outlook strategy. The Outlook strategy is on track and delivers good growth from SME customers. Our customer satisfaction scores hit new records in Q1. Investments in operational excellence have started to pay off and were €51 million during the quarter. We made good progress with the roll-out of the Global Business Services and Simplify & Transform initiatives. Meanwhile, we spent significant time and effort towards the completion and preparation of the intended acquisition by FedEx, which we expect to complete in the first half of 2016.”