TNT Express issues profit warning on eurozone weakness

TNT Express, the Dutch delivery firm, has issued a profit warning today as eurozone weakness hit its margins.

It warned that low growth in Europe would hit third-quarter margins and an anti-competitiveness investigation relating to parcel delivery in France will cost it up to €50 million (£39 million).

The company had an operating profit of €88 million on revenue of €1.7 billion last year, and today said it will no longer hit its forecast of an operating margin of 8 per cent for Europe and the Americas.

It added that trading conditions in Europe have deteriorated further and competitive pressures have increased.

TNT scaled back its global ambitions last year to concentrate on Europe and chief executive Tex Gunning admitted the forecast revision was “disappointing” but said it was still on track.