Cost-cutting for TPG logistics

Dutch group TPG, which owns TNT, says it has launched cost-cutting measures across its poorly-performing logistics business. The comment came as the group reported a 2.8% rise in net profit to £147m in its first quarter results.
Group chief executive Peter Bakker says: There ar a number of key issues to tackle in logistics and therefore we have launched an urgent transformation programme to address the margin erosion.
But a high level of new contract wins boosted organic growth in the first quarter of 2003 and Bakker says that the prospect of new business wins continues to be very healthy.