TNT says it in on target for the managerial and organisational separation of its mail and express businesses which will take place as soon as practicable in 2011.
The group saw underlying operating income in its express business rise to 74 million euros in the third quarter from 68m euros last year. Underlying sales rose 8.2 per cent to € 1,588 million.
But underlying income in the mail business slipped from 114m euros in the third quarter of 2009 to 83m euros this year.
Chief executive Peter Bakker said: “ In Express, volume growth continues to be strong. We continue to focus on the successful implementation of multiple yield-improvement measures, the full benefits of which will however not be felt until next year. Meanwhile, the business continues its focus on containing costs, including investing in own capacity to reduce intercontinental linehaul costs on the back of recent contract wins.”
“TNT continues to prepare for separation of Mail and Express in conjunction with the fulfilment of the Vision 2015 strategy. The internal managerial and operational separation of Mail and Express is fully on track to be effective on 1 January 2011.”
The mail business was continuing to see electronic substitution and continuing competitive pressure, he said. “Key to Mail’s future is the successful implementation of the final restructuring programme, which lies at the heart of Master plan III.”