AMSTERDAM, April 29 Dutch delivery group TNT
Express, the target of a failed $7 billion takeover by
United Parcel Service, said the impact of cost-cutting
measures would show up in the second half.
The collapse of the UPS bid forced TNT Express to come up
with job cuts, divestments and other measures last month to turn
around its performance as a standalone delivery firm.
It said it would cut 4,000 jobs, or about 6 percent of the
workforce, over the next three years and create cost savings of
220 million euros a year by 2015 by improving efficiency.
It is also looking for a buyer for its troubled Brazilian
unit, where it said it expects to reduce losses further, after
agreeing to sell its Chinese domestic business last month.
Bernard Bot, interim chief executive, said trading
conditions this year would continue to be difficult, especially
in Europe, and that the restructuring measures would start to
deliver results in the second half.
First-quarter adjusted earnings before interest and tax
(EBIT) from continuing operations fell 16 percent to 38 million
euros ($49.5 million), while revenue fell 4.5 percent to 1.67
Analysts in a poll commissioned by Reuters had expected
underlying EBIT of 30.9 million euros on revenue of 1.804
TNT Express shares plunged in price after UPS withdrew its
takeover offer and are down a third since the start of the year.
But its shares trade at a hefty premium to those of its
peers by some measures, with a forward price to
earnings-per-share multiple of 21.7 against 13 on average for
its peer group, according to StarMine Smart Estimates.