TNT Express sees lower revenue, UPS offer period extended
TNT Express saw adjusted operating income fall 11.6 percent, year-over-year, to €38 million the third quarter of 2012, due to sluggish volumes in the eurozone, the Middle East and in Africa. The European courier’s adjusted revenues also stalled in the third quarter, falling 1.9 percent, year-over-year, to €1.74 billion. The company's offer period for the proposed merger of TNT and UPS has also been extended to February 23.
Even so, TNT Express explained in a press release that volumes soared in the Asia-Pacific during the third quarter. Bernard Bot, who took over as interim CEO following Marie-Christine Lombard’s September departure, said he’s impressed by TNT Express’s third-quarter performance.
“In a challenging economic environment, we benefited from our diversified product portfolio and superior customer service,” Bot said in a statement. “The quarter saw the highest customer satisfaction score ever realized.” He added that TNT Express also won new business in the automotive, industrial and high-tech sectors during the third quarter.
“Finally, we continue to contain costs and shed loss-making activities to support our operating results,” Bot said. “Our cash performance was also strong.”
No doubt this strength was propelled by the company’s €5.16 billion acquisition by UPS. The deal has hit some snags lately, however. On Wednesday, the Netherlands Authority for the Financial Market extended the offer period for the proposed merger, pushing the proposed deal back yet again.
According to a TNT press release, "Pursuant to the AFM exemption, the offer period is further extended until one week after clearances from the European Commission and the Chinese Ministry of Commerce have been obtained, but under no circumstances later than 28 February 2013."
The merger was slated to close in the fourth quarter of 2012, with the original offer period closing November 9. Less than two weeks ago, UPS announced that the European Commission had provided both companies with a Statement of Objections, which are documents addressing the competitive effects of the intended merger.