The integrator will pump up its European road network with an investment of185 million euros.
TNT will pump up its European road network with an investment of 185 million euros ($234.83 million), boosting the integrator’s market share while improving existing programs.
The investment is part of TNT’s ongoing Outlook performance strategy, which TNT Chief Executive Officer Tex Gunning said saved the company 28 million euros during the quarter.
The road network plan “will improve efficiency and service quality, and strengthen TNT’s position as the preferred road delivery service in terms of quality, speed, coverage and value,” he said in a statement. “Our management board is focused on creating a sustainable future for TNT.”
Gunning called the investment plan “central” to Outlook in the near term.
“The Outlook strategy focuses on improving performance and productivity across the company, including increasing automation in TNT’s hubs and depots, launching new marketing campaigns and continuing to focus on providing our customers with a market leading service,” he said
Gunning said “challenging trading conditions” still exist throughout Europe because of limited visibility, but TNT made headway during the quarter in spite of the challenges. The growth, however, came from regions other than the Americas and Europe, where there was no growth.
During the third quarter, TNT saw operating income finish at negative 47 million euros, compared to a 3 million euro finish in the third quarter of 2013, because of restructuring costs. A 50 million euro provision stemming from a French competition case also had an impact.
For the full year, TNT officials expect restructuring costs to equal 185 million euros.
TNT to make road network investment
