Netherlands-based package delivery company TNT Express NV has reported fourth quarter losses of €173 million or $229 million U.S. Factors for the lack of profits include expensive fuel prices, a bad European economy, and bad business in Brazil.
For the fourth quarter last year, TNT reported profits of €4 million, so the sharp decline comes as a huge surprise. It is also indicative of the poor trucking industry worldwide, although America has begun seeing a reversal in trends.
UPS Takeover?
The United Parcel Service tried to buy out TNT with an offer of €9 ($11.87) per share, valuing the entire company at $6.43 billion, but the offer was firmly rejected. Investors apparently agreed as the stock actually rose to €10.18 on Monday, hinting that a better offer could be coming.
FedEx Making a Bid?
Now it appears that FedEx Corp. could step in and outbid the $6.43 billion offer made by UPS. Experts see this as a strong play for FedEx, which could gain it worldwide influence. It is likely a once-in-a-lifetime opportunity to which they must quickly respond. UPS is bigger in Europe, so the chance for major expansion could have booming resonation for FedEx, including European offices and possibly the creation of more American jobs.
Trucking News
Royalty Truck Insurance will be sure to keep you current on this and other trucking news stories as they develop. Along with our Facebook page and Twitter account @RoyaltyTruckIns, you can also check our blog for weekly updates with the trucking world, including news that could help with the creation of U.S. jobs and help the market rebound.
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