TNT Express, a company for Dutch logistics, has released an issue regarding the fresh alert regarding the weak growth and fierce competition’s impact in the core markets that it has, shorter than two months since it made warnings of margin squeeze, making its shares decrease over seven percent.
Bringing an operating loss for the third quarter of 59.7 million dollars, worsening its condition due to a provision worth 50 million euros to have a fine settled from the competition authorities of France. The transport group and the mail mentioned that it didn’t expect a lot of relief for the remaining parts of the year.
The comments it has might have a bigger significance in the economy, considering the logistics sector being projected as a top indicator for the economy’s state, being somehow sensitive to the stock purchases and the forward planning of companies.
According to Maarten de Vries, the chief financial officer, if people are going to look at their western European core countries such as France, Germany, Benelux, Italy and the UK, they see an environment that is really challenging.
He also said that they are seeing increased competition, more especially in their UK, Italy and France-based domestic markets, also in the pressure on prices in the said markets.