FDX FedEx Corp

Dutch parcel carrier TNT Express NV Monday reported a 71% fall in third-quarter adjusted operating profit and warned of a challenging year ahead as the company prepares for the impending merger with FedEx Corp.

The company, which said it still is undertaking the addition and expansion of facilities and the outsourcing of its technology operations, said it expects to book restructuring charges of about €10 million ($11.02 million) in the fourth quarter of 2015.

For the quarter that ended Sept. 26, TNT made an adjusted operation profit, which strips out exceptional and other one-off items, of €13 million, compared with €46 million a year earlier, on revenue of €1.67 billion, a 1.8% increase from a year ago. The net loss for the quarter reached €49 million, compared with a loss of €55 million for the quarter ended September 2014.

TNT warned earlier this month that third-quarter adjusted operating profit would be "materially lower" compared with last year amid economic volatility in Brazil, China and Australia.

The company also said its Australian operations were hit by competitive pressures and weak commodity markets, and that it suffered from reduced margins in France.

Last week FedEx said European antitrust regulators had informed the company they won't challenge its acquisition of TNT Express, clearing one of the biggest hurdles in the $5 billion deal. The companies still must receive approvals from regulators in other countries.

The transaction is expected to close in the first half of next year.

Write to Ian Walker at ian.walker@wsj.com

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(END) Dow Jones Newswires

October 26, 2015 14:55 ET (18:55 GMT)

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