TNT to split mail, express operations
Dutch postal and express delivery group TNT announced on Tuesday that it intends to separate its core operations into two separate companies from January 1 next year.
In a statement, it said it expected that "Mail and Express can be successful as standalone companies" in light of the fact that "the strategic challenges for the two businesses are increasingly different".
Liberalisation of postal services in April 2009 and competition from the Internet has led to smaller mail volumes for TNT, which is the legacy domestic mail carrier in the Netherlands.
The express delivery side of the business, however, has expanded to more than 200 countries around the world.
On Monday, TNT reported a 96.3-percent drop in net profit for the second quarter to 3.0 million euros (4.0 million dollars), reflecting a provision of 168 million euros mainly to cover the cost of reducing its workforce in postal operations in the Netherlands.
© 2010 AFP