TNT EXPRESS, the Dutch express delivery service in takeover talks with United Parcel Service, said it would refocus operations on Europe as financial losses mounted.
The 2011 operating loss at Europe’s second largest express delivery service was €105 million compared with earnings before interest and taxes of €180 million a year earlier. Sales climbed 2.7 per cent to €7.25 billion.
TNT Express, which was spun off from the former Dutch national postal operator, will seek co-operation agreements with airlines to carry goods outside Europe and partnerships to provide services in China and Brazil.
TNT Express is in talks with UPS after rejecting a €4.89 billion offer on February 11th from the US company.
“We recognize that more investment is required” in subsidiaries in Brazil and China to make them “high-standard operating companies, and we see some complementary competencies with potential partners”, said chief executive officer Marie-Christine Lombard. “It could be commercial agreements, could be joint ventures, it could go up to a sale. It’s too early to say.” – (Bloomberg)
