Small business recovery helps TNT Express ahead of FedEx takeover
AMSTERDAM, July 27 (Reuters) - Dutch logistics company TNT Express reported underlying revenue growth of 4.1 percent in the second quarter, beating analysts' estimates, after revenue from small and medium units globally recovered after years of decline.
The fourth-largest global logistics firm, which in April agreed to be taken over by larger U.S. rival FedEx for $4.8 billion, said it still expected 2015 to be a difficult year, marked by restructuring costs and major investments in logistics facilities around the world.
"We are achieving good growth in the SME customer segment after years of decline," said Chief Executive Tex Gunning in a statement on Monday.
"We have experienced some positive developments in Western Europe, but we remain cautious given the economic volatility in China, Brazil, Australia and Greece."
Revenues were up 6.2 percent at 1.8 billion euros ($1.98 billion), higher than the 1.7 billion euros expected by analysts polled by Reuters. That was helped by revenue boost from a stronger dollar, though lower fuel surcharges were a headwind. The company made operating income of 19 million euros. ($1 = 0.9085 euros) (Reporting by Thomas Escritt; Editing by Biju Dwarakanath)
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