TNT expects tough 2015 ahead of FedEx takeover

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Dutch logistics group TNT Express on Tuesday reported a first-quarter operating loss and lower comparable revenues and said the coming year would be difficult as it prepares to be taken over in 2016 by larger American rival FedEx. The company made an operating loss of 11 million euros ($11.96 million), partly because of pricing pressures, especially in its core European international markets, calendar effects, ongoing investments and a decline in fuel surcharges.

TNT Express said it expected trading conditions would remain tough, especially in Europe, during the rest of 2015. It said it expected restructuring and other charges of between 25 and 30 million euros in the second quarter.

Operating income fell particularly sharply in the International Europe segment as trading conditions remained difficult in the continent and as the company rushes to ramp up its infrastructure to strengthen its position against rivals.

Operating income was up in the international Americas, Middle East, Africa segment, while domestic operating income was slightly down because of pricing pressures.

"During the FedEx offer process, we will continue to focus on our customers and operational efficiency," Chief Executive Tex Gunning said in a statement.

FedEx said earlier this month it would buy TNT Express for 4.4 billion euros in 2016, arguing that the Dutch company's extensive European infrastructure would complement FedEx's in an area where it is behind European rivals.

Dutch postal operator PostNL owns almost 15 percent of TNT's shares.

TNT Express made revenues of 1.6 billion euros, in line with forecasts made by analysts polled for Reuters. While that was a 1.3 percent increase year-on-year, results stripped of currency effects and disposals were down 1.5 percent.