TNT posts 60% drop in quarterly profit

TNT has reported a 60% drop in fourth-quarter net profit as volumes in its express delivery unit were hit by the recession and said it could not give an earnings outlook for 2009.

TNT has reported a 60% drop in fourth-quarter net profit as volumes in its express delivery unit were hit by the recession and said it could not give an earnings outlook for 2009.

Net profit fell to €59m ($75.3m) in the final quarter from €148m ($188.9m) last time on revenue down 2.4% to €2.93bn ($3.73bn). TNT will pay its final dividend in shares.

The group said it expects revenues at its express delivery arm to fall further in 2009 due to volume declines and lower fuel surcharge.

“2009 looks set to be a very challenging year; predictability in today’s economic environment and the Express markets in particular is very limited and pressure on volumes is expected to remain high during the year,” said chief executive Peter Bakker.

“Against this background we abstain from giving an outlook for 2009,” he added.