TNT now considers sale of forwarding business too
published: cw 32, 2006 in Mergers & acquisitionsDutch based mail, express and logistics group TNT Management revealed that it was looking at the possibility of selling off this unit in addition to Logistics.
The company is presently analysing whether the forwarding side of the business (formerly Wilson Logistics) can be integrated with the express networks. The Freight Management business also grew at a reasonable 7.2% with operating profits up 66% to ?5 million.
The problem area is still TNT Logistics. This has been ?ring-fenced? from the Group?s financial figures as disposal is said to be imminent. Here, excluding the disposal of the French Transport business, growth in revenue was 4% and management stated that profit margins have improved. The business however, posted a headline profit down 20.6% at ?27m compared with last quarter, blaming the cost of discontinued operations and disposal. As far as the sale process is concerned, it has been reported that two of the three potential buyers presently in the frame are private equity houses. These are rumoured to be Apollo Management and PAI although it is not clear whether any trade buyers are still active.
In summary, the overall figures continue to indicate that TNT Group has strong, profitable businesses in its Express and Mail operations. However management will be keen to move o?n from a difficult period in the company?s history to focus o?n its new ?network? strategy.
Source: Transport Intelligence
----- Advertisement -----
Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com |
 paperback student version $ 19,99 hardcover executive version $ 29,99 |
print terms
