Netherlands-based TNT Express said it plans to concentrate on its core European market, which accounts for nearly 70 percent of its revenue, after registering a net loss of US$225 million in the last quarter of 2011 from a net income of $5.2 million in 2010.
TNT, Europe’s second largest express delivery service, suffered a full year net loss of $351 million from an $86 million profit for the same period in 2010.
The parcel delivery giant logged an operating loss of $139 million in 2011 after making a profit of $465 million in Europe and losses of $468 million and $99 million in the Americas and the Asia-Pacific, respectively.
On the new strategy to refocus on Europe, Marie-Christine Lombard, CEO of TNT Express, said in a press release dated February 21: “Our franchise in Europe is unrivalled, with its unique service portfolio, dense networks and leading presence in all countries. This franchise gives us confidence in the future.”
She added that while their markets outside Europe remain critically important to them, they will be changing their business approach. “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. Our objective is to strengthen our proposition to customers and employees while reducing our financial exposure.”
TNT Express earlier received an unsolicited acquisition bid of $6.45 billion from U.S.-based United Parcel Service, the world’s largest package shipper, for its entire issued capital, which TNT Express subsequently rejected. Talks between the two sides are still ongoing, however.
Photo courtesy of TNT Express
