TNT says UPS deal still on track
DUTCH parcel delivery company TNT Express said yesterday its acquisition by US group United Parcel Service (UPS) was on schedule, as it reported a return to a first-quarter operating profit.
TNT Express said it had first-quarter operating income of €37m (£30m), compared with a €79m loss in the 2011 period. Revenue rose 1.3 per cent to €1.82bn. In March, TNT Express accepted an offer to be acquired by UPS, the global mail service leader, for €5.2bn.
TNT Express said yesterday it had “experienced mixed economic conditions in Europe and slowing Asia-Europe trading volumes,” without saying how those developments would affect its results.
UPS was due to present details of the offer for TNT Express to Dutch authorities by 19 May.
TNT said that a programme of “indirect cost savings” that it began in May last year were on track to be completed this year, and that its spending and working capital targets were in line with its medium-term aims.
“As announced at the beginning of the year, the first quarter of 2012 has been challenging, given the ongoing sluggish business environment,” said chief executive Marie-Christine Lombard.
But, she added: “Profitability in Asia-Pacific improved, despite weak intercontinental demand. Americas also improved, with better results in Brazil.”