Saying both the mail and express businesses showed good organic growth as the company continued to invest in emerging businesses, TNT's CEO, Peter Bakker, called results "satisfactory."
The express unit reported strong volume and revenue growth in the third quarterEarnings before depreciation and amortization were €190 million ($273 million) for the express unit.
Group revenues were up 10.5% in the third quarter, reaching €2,648 million and producing an operating income of €258 millionThis was in line with 2006 figures despite incremental start up investments of €12 million in high growth areasProfit from continuing operations was €166 million.
Calling express growth in Europe "strong," the company portrayed markets in the rest of the world (RoW) as accelerating growthThe organic revenue increase was not supported by fuel surcharges in the current periodAcquisitions contributed to break-even earnings before interest, taxes, and amortization.
The outlook for express is continued revenue growth-around 15%--with a balance of organic and acquisition growthOperating margin is expected to end the year at 9% to 10%.
Mail revenues are expected to grow at single-digit rates.