Dutch parcel service TNT Express issues profit warning
TNT Express shares slumped almost 11 percent on Wednesday after the Dutch courier company warned it is unlikely to meet its full-year targets due to weak growth in Europe and the US. TNT said it was “no longer prudent to maintain our 2015 guidance — which assumed an economic growth rate in Europe of between 2 and 3 percent — of an adjusted operating margin of 8 percent” for Europe and the Americas. The news sent its shares tumbling 10.5 percent to 5.03 euros on the Amsterdam stock exchange. TNT also warned it was making a provision of 50 million euros ($64 million) to pay a fine resulting from a French probe into alleged anti-competitive behaviour. Concerns have been mounting about weak economic growth in the EU, with a key survey on Tuesday showing business activity in the 18-nation eurozone slowed this month. “Overall trading conditions in Europe have deteriorated further and competitive pressures have increased,” the company said in a statement.