Dutch logistics firm TNT Express warned sluggish growth in Europe would hit profit margins in the third quarter, sending its shares tumbling more than 10 per cent.

With European growth below the 2 to 3 per cent it had been targeted and competition fierce, the parcel delivery company said yesterdayit would not meet an 8 per cent adjusted operating margin in it main European and American markets.

The logistics sector is seen as a leading economic indicator as it is sensitive to companies’ planning and stock purchases.

"This is a more realistic approach," said Andre Mulder, analyst at brokers Kepler Cheuvreux. "TNT did not offer a new margin forecast. It also announced it would set aside €50 million to settle a pending fine from French competition authorities over alleged anti-competitive behaviour." – Reuters