TNT, Europe's second largest mail and delivery company after Deutsche Post , echoed recent positive results from its peers, saying higher volumes and lower consignment costs buoyed the performance of its express unit.
But even as even as operating income at the company's express unit nearly tripled, underlying operating profit came in below the average forecast, offering investors a reason to take some of the profits from the recent rally in TNT's shares.
The stock has risen more than 5 percent since April 8, when the company said it would spin off mail, defying a corresponding 2 percent drop in Amsterdam's bluechip index as investors saw the move facilitating a bid for express.
TNT was tightlipped about its exact intentions for mail. It warned that the global economic recovery was still fragile and its express unit could be dragged down by pressure on prices and costs.
"The hoped recovery in express could still not be confirmed by TNT and it was mail that again outperformed," KBC analysts said in a note.
Despite Dutch addressed mail volumes falling by 10 percent, TNT posted a rise in its mail unit's underlying operating profit, driven by lower pension charges and a better performance by foreign mail operations, particularly Belgium and Italy.
Last week Deutsche Post said it saw clear signs of economic recovery, particularly in Asia. U.S. rivals UPS and FedEx have also reported stronger quarterly results on an Asian-driven recovery. (Reuters)
