TNT predicts dismal outlook for 2015

On the heels of a fourth-quarter 2014 operating loss of US$60 million, Dutch package delivery firm TNT Express NV is not optimistic about the year ahead. In mid-February the stock price fell as much as 9.6 percent, the most in almost five months, according to Bloomberg Business. The stock is down 18 percent over the past 12 months, compared to a 14 percent rise in the Amsterdam Exchange Index.

Integrator UPS tried to acquire TNT in 2013, but the plan was scrapped after European antitrust regulators objected to the marriage. UPS had hoped to use the TNT European network to increase its presence outside the U.S. After the failed acquisition, TNT restructured, cut costs, sold operations and invested in its road network to hold on to its customers in Europe, Reuters reported.

Chief Executive Tex Gunning said he expected the company to make an operating profit in 2015, but declined to provide details. “We will, as I mentioned before, not make a loss in 2015.”

TNT expects restructuring costs at €250 to €300 million between now and 2017. Great Britain, France and Italy have still not stabilized from the recession, which contributes to TNT’s problems. One-time tax expenses including a €17-million charge from Brazil also hurt the company.


 

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