2006 week 19
TNT in the news
TNT struggles to manage logistics sale - paper
8 May 2006
AMSTERDAM - Dutch mail company TNT NV is struggling to manage the sale of its logistics business due to the large number of interested parties, financial daily Het Financieele Dagblad reported on Monday.
Citing sources close the sale process, the paper said TNT had operational problems because it had to negotiate with about 10 interested parties at the same time. "Candidate buyers are asking for ever more detailed and specific information during the negotiations," which took time to compile, the paper cited one source as saying. A company spokesman would not comment on the report.
TNT Chief Executive Peter Bakker said last week that the group was beginning to compile a short list of bidders. The Dutch mail company announced the sale of its underperforming logistics activities -- which represent about a quarter of group revenue -- in December.
The business has a book value of about 1.15 billion euros ($1.5 billion), according to TNT's 2005 annual report, and the company has said it expects to make a profit on the sale that it sees closing in the second half of the year.
Source: Reuters www.reuters.com
Dutch TNT Sees Large Investments in Germany
8 May 2006
Dutch mail and express deliveries group TNT NV expects large investments in the coming years to achieve its growth ambitions on the German letter delivery market, CEO Peter Bakker said on May 5, 2006.
Germany and the UK are important markets for TNT, where it aims to grow in a move to compensate the lower results in the shrinking postal market in the Netherlands. The forthcoming liberalisation of the German postal market offers a great growth potential, TNT said. The UK postal market was liberalised at the beginning of 2006.
According to Bakker, TNT will need four to five years to acquire a share of between 10 pct and 15 pct in the German postal market, provided that it will be liberalised in 2008.
With a market share of 10 pct to 15 pct in Germany, where Deutsche Post is currently monopolist in letter delivery services, TNT will deliver more letters than in the Netherlands.
Source: Dutch News Digest www.dnd.nl
Pirelli, TNT extend distribution agreement
10 May 2006
Italian tire manufacturer Pirelli has chosen to consign its German logistics operations for another three years to TNT Logistics, the integrated supply chain solutions division of Dutch group TNT.
Under the terms of the contract, TNT Logistics will manage the Pirelli factory warehouse in Breuberg, Odenwald, and the national distribution center in nearby Otzberg.
TNT will assume responsibility for receiving and warehousing tires from various international plants and preparing orders for 24-hour distribution to Pirelli customers throughout Germany. This service includes order administration and tracking of shipments. "[A] market survey has shown that customers see Pirelli as the market leader when it comes to logistics," explained Christian Muhlhauser, director of logistics and planning for Pirelli Deutschland. "By integrating TNT in the Pirelli processes, we have been able to increase efficiency and quality while reducing costs."
In 2005, Pirelli said its warehouse in Otzberg benefited from TNT Logistics' lean warehousing approach that aims to increase productivity, reduce costs and improve service by eliminating waste in the logistics processes.
Source: Datamonitor