TNT profits slip as cost-savings targets are hiked
TNT yesterday reported a 45 per cent fall in quarterly core profit, its fourth consecutive year-on-year decline, and the Dutch mail company boosted its cost savings target to cope with weaker demand for delivery services.
Europe’s second-largest mail and express delivery company after Deutsche Post also decided to issue an interim dividend of €0.18 per share on the back of strong cash flow, which analysts took as a sign of a nascent recovery.
The cash or shares dividend payment was a first sign of confidence in underlying operations and dividends would continue if cash conditions remained strong, chief executive Peter Bakker said, but added that tough conditions would continue.
“The global economy, and Europe, are still in a recession and we cannot say for sure when we can expect a recovery,” Bakker said.
TNT posted earnings of €178m, compared with analysts’ forecasts of €184m and €324m a year earlier.