TNT Profit Declines 60 Percent

TNT’s net profit dived 60.5 percent to $115 million in the three months ending in June, the fourth consecutive quarter of year-on-year decline. Europe’s second largest mail and express delivery company warned of tough trading conditions through the rest of 2009.

Operating income in the second quarter slumped 45 percent compared with a year ago to $253 million. Revenue was 10 percent lower at $3.6 billion.

“Going forward we assume continuation of tough trading conditions to persist in the second half of the year,” said chief executive Peter Bakker.

The rate of decline in express volume slowed during the quarter, with a small upturn in the last weeks of June, Bakker said.

“The decline of express volumes seems to be bottoming out,” Bakker said.” In the summer period, however, there remains the possibility of longer holiday stops in production lines of our customers, which may impact volumes.”

TNT’s express division booked underlying operating profit of $126.4 million against $217.3 million in the second quarter of 2008 on revenue 15.5 percent lower at $2.06 billion.

The mail unit’s operating income slipped 13.3 percent to $213 million on sales broadly unchanged at $1.45 billion.

Deutsche Post, Europe’s biggest mail and express delivery company, last week reported second quarter earnings fell 38 percent year-on-year to $365 million.

Contact Bruce Barnard at brucebarnard47@hotmail.com.