TNT Express, the Dutch delivery service, has issued a profit warning, blaming worsening trading conditions in Europe for scrapping its previous guidance to investors.

The business-to-business delivery service has been squeezed by the continuing eurozone woes, particularly in Italy, one of its five biggest markets.

Its warning follows a survey of eurozone business activity that showed companies cutting prices as business activity grew at its slowest pace this year.

Business for TNT has been slower than expected and customers have opted for cheaper, slower delivery options. TNT also faces stiff competition in Germany and the UK which has partly offset stronger economic growth in those countries to date.

In a trading update, the company said: “Since the interim results of 28 July 2014, overall trading conditions in Europe have deteriorated further and competitive pressures have increased. This means that it is no longer prudent to maintain our 2015 guidance.”

TNT shares fell almost 11% to €5.01 (£3.93) in mid-morning trading.

TNT said its forecast of an 8% operating margin in 2015 was based on Europe’s economy expanding between 2% and 3% annually. In July, the IMF maintained its forecast for eurozone growth of 1.1% for this year as it revised down its outlook for the global economy.

The eurozone has remained in the economic mire despite the apparent resolution of the euro crisis that threatened to break up the single currency. Mario Draghi, the head of the European Central Bank (ECB), on Wednesday tried to calm fears about the currency zone’s economy. He said the ECB would keep monetary policy loose for a long time to support growth. Earlier this month, the ECB cut the headline eurozone interest rate to 0.05%.

TNT’s boss, Tex Gunning, described the profit warning as disappointing and said TNT would speed up investment and cost cutting.

The company also set aside €50m to settle a French competition inquiry into the parcel delivery industry. The French authorities are also investigating Royal Mail, whose shares fell almost 1% on Wednesday morning.