AMSTERDAM Feb 18 Dutch logistics company TNT
Express said on Tuesday its long-term cost savings
programme is on track to hit a 240 million euro ($329 million)
target by 2015 and boosted profit by 35 million euros last year.
TNT Express was forced to come up with a standalone strategy
last year after the European Commission, Europe's market
regulator, blocked UPS's 5.2 billion takeover offer
because of competition concerns.
TNT Express has cut 4,000 jobs and will get rid of several
hundreds more across the globe as part of its cost-reduction
strategy, Chief Executive Office Tex Gunning said, announcing
that the company met forecasts for adjusted fourth-quarter
operating profit and stuck to its 2015 target.
The effect of the cost savings programme was "definitely
there and it will continue to be there in 2014 and 2015," Chief
Financial Officer Bernard Bot said.
TNT Express swung to an operating profit from continuing
operations of 88 million euros, from a loss of 52 million euros
a year ago, while revenue fell 4.6 percent to 1.704 billion
The cost cutting programme is aimed at achieving savings of
240 million euros by 2015. By the end of last year it was 20
million euros ahead of schedule, Bot said.
TNT Express shares rose 1.5 percent to 6.86 euros in late
morning trading in Amsterdam.
TNT said it was still addressing problems in Italy, where it
is shifting to more profitable business but is witnessing a
In Brazil, where it has written off about 200 million euros
in book value bringing it down to 39 million euros, TNT Express
has failed to find a suitable buyer, scrapped the sale of the
business and said it will focus on turning the business around.