TNT profits increase 3.8 percent in first quarter

TNT’s first quarter earnings from operations are up by 5.5 percent with mail showing strong margins and lower declines in direct mail volumes. EMN is growing in line with expectations. The express sector has continued margin improvements while the logistics sector faces a difficult environment in France.

Earnings per share up by 8.7 percent with profit attributable to the share holders up by 3.8 percent. Also the cancellation of 20.7 million outstanding shares.

CEO Peter Bakker says “In Mail and Express, we made a good start to the year. Mail division recorded a strong operating margin, with the Cost Flexibility program continuing to drive efficiency. For the first time, we gained more addressed volume abroad than we lost in the Netherlands. Express revenues grew double digit and operating income was up almost 50 percent, reaching another quarterly margin record. The division is firmly on track to reach its ambitious target. In Logistics, Freight Management is fully meeting expectations. However, we continue to face a difficult environment in Contract Logistics, particularly in our French business. We are preparing a turnaround plan for France, which we are planning to show to you at Q2.”