TNT to sell forwarding division; 3rd quarter operating income up 9%

TNT to sell forwarding division; 3rd quarter operating income up 9%    Not long after selling its logistics unit, Netherlands-based postal and express group TNT N.V. confirmed today it will also divest its freight forwarding unit.
   TNT Freight Management was created by the acquisition of Sweden’s Wilson Logistics Group for $320 million in August 2004. The company employs 2,300 people, with 126 offices in 28 countries.
   “The business unit as such is in excellent shape, however, as we are focusing on the growth opportunities in our core mail and express network distribution activities, our Freight Management business unit would benefit from a different corporate environment,” said Peter Bakker, TNT’s chief executive officer. “Our initial exploration has identified strong interest in this business.”
   The 1.48-billion-euro ($1.9 billion) sale of TNT’s logistics division to New York-based investment firm Apollo Management is expected to be complete by the end of the year.
   The announcement of the decision to sell TNT Freight Management coincided with the publication of TNT’s third quarter results.
   Group operating income increased 8.9 percent to 257 million euros ($327 million), from 236 million euros. Total revenue improved 9 percent to 2.39 billion euros ($3.05 billion), compared to 2.20 billion euros a year ago.
   “TNT’s board of management is pleased with the results of the third quarter. Operating income grew by 8.9 percent fueled by new records in express both in terms of revenue growth and the Q3 margin,” Bakker said.
   For the year to date, TNT’s operating income was up 11.1 percent to 921 million euros ($1.17 billion) with revenue improving 7.9 percent to 7.29 billion euros ($9.28 billion).