Brazil losses drag down TNT Q2 profit
The logistics company TNT Express on Monday reported second quarter operating income of $66 million, down 23.3 percent from the same period in 2010.
The fall in profit was primarily attributable to major customers losses in Brazil, the company said, with the Americas region’s operating loss tripling in the second quarter to $65 million. Excluding the Americas region, TNT said its second quarter operating income grew 12 percent, led by strong growth in the Europe-Middle East-Africa region.
Revenue for the company grew marginally, 0.9 percent to $2.6 billion.
Year-to-date, TNT has sustained an operating loss of $48 million, compared to a profit of $172 million in the first half of 2010, due to what it calls one-off reorganization costs in its Brazil business. TNT Chief Executive Officer Marie-Christine Lombard said the “turnaround in Brazil is on track, though the short term will be challenging.” The company expects to break even in that business by the second half of 2012. Revenue for the first half increased 3.7 percent, to $5.2 billion.