TNT reveal 10% profit drop for 3Q
TNT has announced a drop in Group profit by 10% year-on-year for its third quarter compared to the same period for 2008. Despite the 10% drop, the company recorded profits from continuing operations of €102m, also announcing that cash flow remains strong with the company’s cost-saving target being reaffirmed.
The Express sector of the business saw a quarter-on-quarter improvement in volumes and weight per consignment and a level of continuing success in achieving cost savings, which stand at €128m in Q3 2009, €368m year to date. TNT said the underlying operating income was €77m (€99m in Q3 2008).
In the mail sector – and in line with global trend – addressed mail declined 4.8% in the Netherlands over the period, with the company boasting Strong Master plan savings of €24m in the quarter.
Group CEO Peter Bakker said: “In this quarter the trading environment has stabilised further – with some early signs of positive underlying developments. With Q3 being the low volume season, the EBIT of both our divisions is at a satisfactory level.
“The rate of decline of Express volumes has modestly improved. In particular, the average weight per consignment developed positively for the first time in a year, while price pressure remained. At the same time, our people continue to deliver on cost.
“Mail achieved a solid result helped by strong Master plan savings in the quarter. Discussions with our unions to find ways of achieving necessary cost savings are ongoing.
“TNT is optimally positioned to take advantage of a possible economic upturn but also needs to be prepared for continued harsh economic conditions and therefore remains focused on achieving its aggressive cost and cash control targets.”
