PARIS: A couple of weeks after its acquisition by Memphis-based FedEx Corp. was announced, TNT Express NV reported its fourth consecutive quarterly loss.
According to Bloomberg, the company, which reported its first quarter 2015 earnings this week, had a loss of $21 million for the first quarter, compared to net income of more than $2 million in the first quarter of 2014.
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FedEx announced an all-cash offer of €4.4 billion, or $4.8 billion (U.S.), for TNT Express on April 7.
TNT Express attributed the loss to “weak sales in Western Europe” as well as pricing pressures, ongoing investments and a drop in fuel surcharges. TNT Express investments were €78 million in Q1 2015, compared to €26 million in Q1 2014, following the company’s purchase of equipment, hubs, depots, vehicles and IT.
“During the FedEx offer process, we will continue to focus on our customers and operational efficiency,” Tex Gunning, CEO of TNT, said in the statement. “Our guidance is unchanged: we expect 2015 to be a challenging year of transition, followed by year-on-year improvements from 2016 onwards.”
Shareholders have responded well to the FedEx acquisition so far, according to Maarten de Vries, TNT’s CFO. The acquisition is expected to be completed in the first half of 2016.
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