TNT N.V. today announced the decision to divest its Freight Management business unit.
The business unit as such is in excellent shape, however, as we are focusing on the growth opportunities in our core Mail and Express network distribution activities, our Freight Management business unit would benefit from a different corporate environment," says Peter Bakker, TNT CEO. Our initial exploration has identified strong interest in this business.
TNT Freight Management is a freight forwarding business using air and sea transportation and originates from Wilson Logistics, which was acquired by TNT in 2004. The business unit employs 2,300 people, operating from 126 offices in 28 countries with a significant presence in the Nordic region. The business unit represents approximately 800 million (approximately USD $1 million) in annual revenues.
The company also announced strong operating income growth in the third quarter.
- Group revenues up 9.0%; mostly organic growth.
- Profit from continuing operations up 5.0% to 169 million (USD $215 million).
- Operating income up 31.3% in Express Business Segment. Double-digit revenue growth, with record volumes. Record third quarter margin of 8.8%.
- In Mail, over 2.6% revenue growth with an operating margin of 14.2%.
- Decision to divest Freight Management.
- Part of the one-off costs related to sale of the Logistics businesses booked in the third quarter.
"TNTs Board of Management is pleased with the results of the third quarter," says Peter Bakker, TNT CEO. "Operating income grew by 8.9% fueled by new records in Express both in terms of revenue growth and in the third quarter margin level. The Mail operating margin was in line with the outlook but Mail Netherlands saw above trend volume decreases in this quarter. We confirm the full-year outlook for TNT."
TNT Express is the worlds leading business-to-business express delivery company. The company delivers 3.5 million parcels, documents and pieces of freight a week to over 200 countries using its network of nearly 900 depots, hubs and sortation centres. TNT Express operates over 19,000 road vehicles and 43 aircraft and has the biggest door-to-door air and road express delivery infrastructure in Europe.
About TNT
TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the
