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 FedEx, according to Reuters.
“During the FedEx offer process, we will continue to focus on our customers and operational efficiency,” Chief Executive Tex Gunning said in a statement. The company is optimistic that the “much simpler” FedEx deal will not face the same level of scrutiny from European regulators that tanked rival UPS’s bid for TNT in 2013.
The company reported 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 and as the company rushes to ramp up its infrastructure to strengthen its position against rivals, Reuters reported.