TNT silent over UPS bid as losses mount
SHARES in Dutch delivery firm TNT Express fell by almost three per cent yesterday after it said it was planning to curb its international expansion plans in the wake of a net loss of €173m (£145m) for the fourth quarter.
Despite pushing for a higher price from potential suitor UPS – whose €9 per share offer it rejected last week – TNT admitted yesterday it was reducing its exposure to emerging markets in China and Brazil, where it will instead forge local partnerships.
“We will reduce our exposure to fixed intercontinental capacity through cooperation agreements with leading airlines and we will explore partnership opportunities for our domestic activities in Brazil and China,” said chief executive Marie-Christine Lombard.
Revenue growth of 2.3 per cent in the fourth quarter helped boost full-year revenues to €7.2bn, but the firm’s overall operating loss for 2011 was still €105m, which it put down to “operating losses in Brazil and challenging Asia-Europe trading conditions”.
The firm said it is targeting €150m of fixed cost reductions by end of 2013.
TNT declined to provide an update on the UPS bid as shareholders continued to hold out for a higher bid, but analysts speculated yesterday that rival FedEx could also enter the fray.