Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Amsterdam  >  TNT Express       NL0009739424

TNT EXPRESS
Mes dernières consult.
Most popular
SummaryNewsCalendarCompanyFinancials 
News SummaryMost relevantAll newsSector newsTweets

UPS To Use More Cash On TNT Buy, Add $5 Billion TO Stock Buyback

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/03/2012 | 11:20pm CEST

United Parcel Service Inc. (UPS) outlined plans to use a higher percentage of cash to finance its purchase of TNT Express N.V. (TNTE.AE, TNTEY) and received authorization to buy back an additional $5 billion in stock.

In March, the shipping giant reached an agreement to acquire TNT in a deal valuing the Dutch package shipper at around EUR5.16 billion. TNT Express is the smallest of the big four global package shippers, and while it has struggled somewhat in recent months, the merger would give UPS a market-leading position in Europe to round out its big domestic U.S. presence and expanding Asian business.

UPS expects to use about $5 billion of available cash and issue about $1.8 billion in new debt to finance the acquisition, a $2 billion increase in cash from its prior guidance. The company said it would determine maturity details and a timetable for the new issuance at a later date.

The acquisition, which must be reviewed by European Union regulatory authorities, is expected to close in the third quarter.

"UPS's legacy of financial strength allows us to complete the acquisition of TNT primarily using cash," Chief Executive Scott Davis said. "At the same time, UPS remains committed to its policy of shareowner returns through dividends and share repurchases."

As a result of the increased use of cash, the company lowered its view for share repurchases this year to $1.5 billion, from the $2.7 billion it predicted in January. It expects the same level of activity in 2013.

UPS continues to face a weak global air-freight market, which has suffered from slumping volume in Asia and a drop in exports to the U.S., though the shipping giant said earlier this year its domestic package shipments are rising at a brisk pace. UPS has said it expects U.S. package volume to rise 2% to 3% this year, outpacing the slight growth seen in 2011.

The new stock buyback program has no expiration date and replaces one originally announced in 2008.

Last month, UPS reported its first-quarter earnings rose 6% on stronger profits in its U.S. package and supply chain and freight businesses, though profit in its international package unit declined.

Shares were off 2 cents at $78.05 after hours. The stock is up 6.7% this year through the close.

-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TNT EXPRESS
2016DJFEDEX : Plans Increased Spending
2016DJAHEAD OF THE TAPE : No Memphis Blues for FedEx -- WSJ
2016DJFEDEX : No Memphis Blues for FedEx -- Ahead of the Tape
2016DJFEDEX : Raises Dividend
2016 TNT EXPRESS : Shares to be Delisted 06 June 2016
2016 TNT EXPRESS : FedEx Announces Results of Post-Closing Acceptance Period for TNT ..
2016 TNT EXPRESS : FedEx Acquires TNT Express 25 May 2016
2016 TNT EXPRESS : FedEx Declares Offer for TNT Express Unconditional 18 May 2016
2016 TNT EXPRESS : FedEx and TNT Express Announce that 88.4% of all TNT Express Share..
2016 TNT EXPRESS : announces its intention to sell TNT Innight 04 May 2016
More news
News from SeekingAlpha
03/07 WALL STREET BREAKFAST : A New Era For Healthcare?
03/07 Court annuls EU rejection of UPS, TNT merger
2016 FEDEX : TNT Express To Strengthen Global Presence
2016 Gain 50% From This Bidding War, Part II
2016 FedEx closes on TNT Express deal
Income Statement Evolution
Managers
NameTitle
David Binks Chief Executive Officer
David J. Bronczek Chairman-Supervisory Board
Shemaya Levy Vice Chairman-Supervisory Board
Margot A. Scheltema Member-Supervisory Board
Christine P. Richards Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
TNT EXPRESS0
UNITED PARCEL SERVICE4.17%103 708
FEDEX CORPORATION20.88%60 352
DEUTSCHE POST22.36%54 656
EXPEDITORS INTERNATIONAL OF WASHINGTON11.23%10 649
YAMATO HOLDINGS CO., LTD.-5.64%8 118