TNT sinks into loss

AMSTERDAM: TNT Express NV said yesterday tough trading conditions in southern Europe contributed to a 350 million ($464 million) goodwill write-off that pushed the Dutch delivery group to a second-quarter loss.

The company is restructuring to bounce back from the collapse of a 5.2 billion takeover by rival United Parcel Service Inc, which was blocked by European regulators in January on competition grounds.

But its express delivery business has been hit by overcapacity and an economic downturn in Europe, with many customers choosing cheaper delivery options, putting pressure on prices.

Nearly half the goodwill write-offs were due to worsening trade conditions in southern Europe, particularly Italy and France, Bernard Bot, chief financial officer, told a conference call.

He said even without the group’s reorganisation, TNT Express would have had to take impairments.

‘‘We probably would have taken a different impairment, we still would have taken a hit, probably on our southern Europe activities,’’ Bot said.

The Dutch firm’s write-offs and other one-offs for the second quarter were related to restructuring following the collapse of the UPS deal.

TNT Express said it remained on track with planned divestments and cost-cuts to meet turnaround targets. It has already announced 4,000 job cuts and asset sales to improve profitability.

TNT Express reported a secondquarter operating loss of 280 million on revenue of 1.7 billion.