Dutch express giant TNT's second-quarter results have revealed a sudden decline in air express volume during June, which the company has blamed on sharply rising fuel prices that affected its premium express European market.
Growth in the Express Division recovered somewhat during July and the company was keen to stress that the fluctuation coincided with heavy growth on its European road network, and that double-digit increases are still evident in TNT's emerging markets.
"The sharp rise in fuel prices during the quarter and the general economic outlook have impacted both our customers and us," said TNT CEO Peter Bakker.
"The resilience of TNT is however best demonstrated by the fact that the volumes in our European Road Network have continued to grow throughout the quarter. Our emerging market activities in Brazil, China and India, with connecting lanes to Europe, all showed double-digit growth."
With growth in its emerging markets standing at a healthy 18.3%, TNT confirmed that the group's full-year outlook remained on target, albeit at the low end, and also indicated that its Express costs savings plan was due to be fully realised in 2010. Recent rumours of talks with FedEx over a merger or takeover, which are now believed to have been shelved, were not mentioned in the quarterly report.
"The quality and mix of our network, combined with cost-saving programmes as announced today, give me confidence in our performance, also under more difficult circumstances," added Bakker.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.