While on the one hand the news of FedEx taking over the Dutch express operator TNT is rife, TNT is still positive about their overall gross profit. TNT recently disclosed the report about the Q2 loss the company incurred. Although the operating profits have attained a beating, the overall revenue has increased a good 6.2%. The operating profits have mostly fell due to the investments TNT has been making on developing and revamping with its Outlook transformation strategy.
TNT’s rival company FedEx is slated close the deal with the company somewhere around the first quarter of 2016. The intended takeover is placed around $5 billion. Based on TNT’s Q2 report, the revenue stands around €1.76bn but the operating profits which is about €41m, have incurred a hit of 41% decline from 2014’s Q2 profits of €70m. Although the drop in fuel surcharges has affected the profits, the gross revenue has attained a boost thanks to the local currencies steadily increasing in comparison to the euro. According to the chief financial officer of TNT, Mr. Maarten de Vries the 41% drop in the overall revenue is due to the investments made on Outlook programme which cost around €15m. From investments in opening new centers to the reduced revenue issues in the domestic business arena, the revenue growth was affected.