TNT first quarter profit down 14%

Dutch mail and express group TNT NV said its first quarter net profit declined 14 percent as its express business had difficulties passing on higher fuel costs, under-utilisation of its air fleet and continuing integration issues in Brazil, while its mail business' profit remained under pressure from lower addressed mail volumes.


First quarter underlying mail revenues were up 3.8 percent to US$1.63 billion while underlying operating income was $178 million, reported Dow Jones Newswires.


Express first quarter underlying revenues increased by 4.4 percent to $2.6 million. The express section reported a loss for the period of $157.25 million compared to $32.64 million in the first quarter of 2010.


Brazil suffered from unexpected and recent volume losses and performance pressure. A non-cash impairment of $178 million was included in the first quarter results.
(Source:http://www.cargonewsasia.com)