Dutch package delivery company TNT Express NV (TNTEF.PK,TNTEY.PK), which agreed to be taken over by the U.S. rival United Parcel Service, Inc. (UPS), reported Monday a sharp increase in second-quarter profit, helped by higher revenues and its cost savings measures.
The UPS offer was formally launched last month end. The two firms had announced the deal in late March, when UPS agreed to buy the Dutch rival for a sweetened offer of 9.50 euros cash per share. The transaction values TNT, Europe's second-largest package delivery firm, at around 5.16 billion euros.
Earlier this month, the companies had announced that the European Commission's assessment of the deal would move to a phase II review as certain areas require more time to analyze. The companies expect the regulatory process to be completed by the fourth quarter of 2012.
TNT Express also expects to discuss the offer with its shareholders at its upcoming Extraordinary General Meeting.
In the second quarter, profit attributable to equity holders of the parent surged to 40 million euros from 4 million euros in the previous year. Earnings per share climbed to 7.4 euro cents from 0.7 euro cents in the year-ago quarter.
Operating income was 77 million euros, up 67.4 percent from last year, while adjusted operating income, at constant FX and excluding one-offs, declined 6.8 percent to 69 million euros. Operating income margin was 4.2 percent, compared to 2.6 percent a year ago.
Total revenues for the three-month period grew 1.7 percent to 1.83 billion euros. At constant exchange rates, revenues declined 1.8 percent.
Marie-Christine Lombard, CEO of the company said, "Despite an increasingly challenging economic environment, TNT Express was able to sustain profitability. In Europe, good volume growth underscores the strength of our diversified product portfolio. Cost savings and revenue-enhancement initiatives also supported profits."
The company said its performance in Asia Pacific and Americas continued to improve due to business development and restructuring measures. Looking ahead to the full year 2012, the company expects increasingly challenging trading conditions in Europe and Asia Pacific intercontinental.
In Amsterdam, TNT shares are currently trading at 8.87 euros, up 0.05 euros or 0.62 percent, on a volume of 1.04 million shares.
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by RTT Staff Writer
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