BUSINESS
10/06/2011 02:46 EDT | Updated 12/05/2011 05:12 EST

TNT Express says 3Q operating performance has worsened, Brazil problems continue

AMSTERDAM - TNT Express NV, Europe's second-largest express delivery company, said its business has weakened in the third quarter.

The Amsterdam-based company said volumes were steady in Europe but customers are opting for cheaper deals, demand and pricing are weak in Asia, and its Brazilian arm has not regained customers it lost earlier in this year.

It says in a statement Thursday it will "value assessment" of its Brazilian arm, an indication that it is considering selling it.

The company is to present third quarter earnings on Oct. 31.

In the second quarter, its first as an independent company, TNT reported a steep decline in net profit to €4 million ($5.8 million) on sales of €1.8 billion, citing higher fuel costs.

TNT is seen as a takeover target for UPS or FedEx.