TNT to hold vote on company split May 25

TNT to hold vote on company split May 25    TNT said its shareholders will vote May 25 on a plan to divide the company into two separate companies, one focusing on the express business.
   TNT announced the demerger plan Dec. 2. The new mail unit will be known as PostNL.
   “The main reasons for separating the businesses are their increasingly divergent strategic profiles and the limited synergies. Separation will enable greater focus and transparency as well as facilitate participation in possible sector consolidation and acquisitions,” TNT said.
   The express company plans to grow into high-end standard parcels and freight and value-added services, in addition to disciplined expansion in key emerging markets, while the mail company said that in the Netherlands it will focus on implementing a restructuring program and seek further growth through parcels and postal activities outside of the Netherlands.
   TNT offered an update on its operations in the first quarter, saying its express business experienced “volatile trading conditions in first 12 weeks of the year.
   “Year-to-date trading conditions have been much more volatile than had been previously assumed. Volatility has been caused by a sharp increase in the oil price, social and political unrest and natural disasters. This was exacerbated by unforeseen effects from the integration issues in Brazil.”
   Total underlying operating income for the first 12 weeks is about 25 million euros ($36 million) lower than last year, the company said.
   The company gave this summary of regional activities:
   ' European activities are performing at satisfactory levels, however, the oil price increase has led to lower international express volumes with related under utilization of its air network and lag in the recovery of higher fuel costs.
   ' In the Americas, Brazil suffered from unexpected and recent domestic volume losses. It said a new management team has been put in place.
   ' Asia-Pacific has seen much lower Asia/Europe volumes, with a recovery only in the last two weeks of March. Floods and strikes in Australia have also held back results. ' Chris Dupin