AMSTERDAM May 7 Dutch mail group PostNL
swung to a first-quarter loss because of a 440 million
euro ($575 million) writedown on its stake in TNT Express
after UPS withdrew its takeover offer for the
Dutch express delivery firm.
PostNL said it still plans to sell its stake of about 30
percent in TNT Express and reiterated its outlook for the full
year for underlying cash operating income of 20 to 60 million
The Dutch mail firm, which has seen its underlying business
steadily decline, suffered a big setback when the European
Commission blocked UPS's $7 billion takeover of TNT Express on
competition concerns, resulting in a sharp decline in the share
"The book value of the stake in TNT Express at the end of Q1
2013 amounted to 927 million euros, 440 million euros lower than
at the end of 2012," PostNL said in a statement, turning to a
quarterly loss of 410 million euros from a profit of 633 million
euros in the same period last year.
First-quarter operating income, excluding pension payments
and currency effects fell 27 percent to 82 million euros.
Revenue was flat at 1.07 billion euros.
PostNL has been struggling to turn around business with
declining volumes eroding profit in its traditional core market
of mail and package delivery in the Netherlands.
In February, PostNL said it would seek 400 million euros of
savings this year as part of an ongoing reorganisation aimed at
resuming dividends and reducing the workforce to make up for