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 program 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 euros.
The cost cutting program 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.
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. (Reuters)