TNT Posts Flat Q2 Net ProfitDutch postal and logistics company TNT N.V. posted a flat second-quarter net profit Friday, but said it would take a pretax charge of 140 million euro ($169.7 million U.S.) in the full year due to restructuring of its loss-making French operations.
TNT is the principal mail provider in the Netherlands through TNT Post, and the world's second-largest logistics provider after Exel PLC of Britain.
The Hoofddorp-based company reported second-quarter net profit of 210 million euro ($254.7 U.S.), the same as a year earlier. Operating income fell 2.8 percent to 342 million euro.
While the three main divisions remain on track to meet full-year 2005 targets, chief executive Peter Bakker said the company would revamp its French operations and take a 140 million euro charge.
"We have reviewed our French logistics business unit carefully, and today we announce our plans: We intend to withdraw from basic transportation activities and refocus on the areas of contract logistics where we can earn our cost of capital," Bakker said.
TNT reportedly is in talks with potential buyers and expects to complete the French revamp by the end of 2005. The French unit posted a net loss of 17 million euro in the first half of this year.
TNT said total sales in the quarter were up 11 percent to 3.385 billion euro from 3.058 billion euro the year earlier.