TNT expect positive operating income for Express in Q1

TNT said on 8 April it expected its key express delivery unit to post a positive operating income in the first quarter and said it was still eying a deal with Britain’s Royal Mail.

TNT said on 8 April it expected its key express delivery unit to post a positive operating income in the first quarter and said it was still eying a deal with Britain’s Royal Mail.

TNT said despite sharp declines in volumes at the unit in the first weeks of the year, the deterioration stabilised during the quarter mainly because Easter falls in the second quarter of 2009, while last year it was in the first quarter.

Shares of TNT swung into positive territory following the announcement, and were up 3% at €13.65 by 2.46pm, GMT. The DJ Stoxx industrial goods and services index .SXNP was up 0.6%.

“The Express volumes at least, for the first time in nine months do not deteriorate further,” said Thijs Berkelder, analyst at Petercam, which he said was spurring the stock’s rally.

TNT’s chief executive Peter Bakker said the firm was watching developments in Britain around plans to partly privatise Royal Mail and that it was still investigating possibilities for a deal with the British mail group.