TNT Post profit down 60 percent in Q2

[TrueBlueTerrier]

http://www.forbes.com/feeds/ap/2009/07/ ... 01853.html" onclick="window.open(this.href);return false;

AMSTERDAM -- TNT NV, Europe's second-largest post company, reported Monday a 60 percent fall in net profit for the second quarter and said it sees little evidence of an economic recovery.

Net profit was euro81 million ($115 million), down from euro205 million in the same period a year earlier and euro5 million better than in the first quarter of 2009. Sales fell 10 percent to euro2.52 billion.

TNT said operating profits were down 81 percent at its express delivery arm, compared to a 13 percent fall at its regular mail arm, as companies cut back on the more expensive services.

Chief Executive Peter Bakker said in a statement that "through the quarter the rate of decline of express volumes has been stable with a small upturn in the last weeks of June."

However, he added that "there remains the possibility of ... stops in production lines of our customers, which may impact volumes."

The company said that overall it doesn't see any certain signs of recovery; it expects tough trading conditions to persist in the second half; and it can't give any forecast for full year earnings.

TNT has used profits to reduce its net debt to euro1.38 billion from euro1.93 billion a year ago.

It has cut around 2,100 jobs since last June and now employs 112,000. It said Monday it still expects to cut 1,260 more jobs at its Express division as part of previously announced restructuring