TNT to sell off French truck unit
TNT has put up for sale its loss-making French trucking operations and expects to complete a deal this year, the Dutch post and logistics group said yesterday. The activities represent 60 per cent of the French unit, which has proved a drag on revenues for several quarters and has resisted efforts to stem losses running at EUR17m (USD20.6m) in the first half on revenues of EUR117m. TNT will also divest those parts of the remaining activities of the unit where it cannot earn its cost of capital, in order to focus on areas such as supply chain solutions for the automotive industry. French and international buyers are interested, said Peter Bakker, TNT chief executive, adding that it expected to complete the majority of the disposals this year. In total the portions to be sold account for 25 per cent of French logistics revenues of EUR250m, he said. The unit generated 5 per cent of logistics revenues of EUR1.2bn in the second quarter, and 2 per cent of group sales of EUR3.4bn.
