Alexa
  • Directory of Taiwan

TNT Post 3rd-quarter profit falls 29 percent

TNT Post 3rd-quarter profit falls 29 percent

Postal company TNT NV reported a 29-percent fall in third-quarter earnings Monday, as customers chose cheaper mailing and express delivery options in the face of economic uncertainty.
Net profit at the Amsterdam-based company was 113 million euros ($142 million), down from 167 million euros in the same period a year ago. Sales grew 1.5 percent to 2.69 billion euros ($3.39 billion).
TNT issued a profit warning two weeks ago, saying customers were sending fewer express packages by air in Europe, the company's most expensive and profitable service.
"The conditions in our European express business have significantly worsened in September and the first weeks of October," Chief Executive Peter Bakker said in a statement.
"Air volumes in September were down an unprecedented 10 percent, while road volumes are showing low growth."
He said he expected the conditions to persist in the fourth quarter.
TNT derives roughly half of its earnings from regular mail and half from express.
Express sales grew 2.3 percent but margins collapsed, and operating profit at the division fell 24 percent to 99 million euros ($125 million).
Mail sales were only fractionally lower, but margins also shrank and operating earnings fell 15 percent to 116 million euros ($146 million).
The company warned that its corporate pension plan is becoming underfunded, which could lead to a charge of roughly 75 million euros ($95 million) in 2009.
The company has net debt of 2.04 billion euros ($2.57 billion), up several hundred million from a year earlier due to a now-completed share buyback program.


Updated : 2021-08-04 02:49 GMT+08:00