HOOFDDORP: TNT Express, under the guidance of former Unilever and Akzo Nobel executive Tex Gunning, has reported earnings of €6.69 billion in 2013, a drop of 4.7 percent from the previous year.
Cash from operations rose 10.6 percent from 2012 to €397 million and despite paying UPS a €200 million non-takeover termination fee, the company ended the year with €472 million in free cash - an increase of €139 million over the preceding 12 months.
Commenting on the results, Gunning said: "We have taken the time to carefully assess the company's competitive position, service to customers, productivity and organisational effectiveness. The conclusions are clear. We have distinct areas of strengths but also need to make substantial improvements. Building on our strengths, our vision is to be the 'fastest and most reliable' European road delivery company."
Gunning said the company has launched a new business strategy called "Outlook" to build on TNT Express' strengths, particularly its European road network and large base of SME customers. "Outlook has three priorities: an absolute focus on profitable growth, making a step-change in reliability and productivity, and organising ourselves to be more nimble and accountable," he explained.
To help achieve these goals, during the second half of 2014 the company plans to adjust its organisation to reflect international express activities across Europe; implement a separate leadership team for Asia Middle East and Africa; and set up a single cluster for all domestic businesses in France, Italy, the United Kingdom, Brazil, Chile and the Pacific.
Gunning studied Economics at Erasmus University in Rotterdam and started his career at Unilever where he worked for 25 years culminating in the position of business group president Asia Foods. In 2009 he joined the board of management at AkzoNobel before his appointment last year as CEO of TNT Express.