According to Peter Bakker, CEO of TNT:
– In the first quarter of 2007, TNT recorded growth in both turnover and operating income. During this period, the mail division showed a decline in volume in the Dutch market, which is the result of intensifying competition and substitution. Further cost control processes and one-off proceeds from the sale of real estate allowed us to maintain the overall profitability of the mail division at a level similar to last year’s. European Mail Networks recorded a 25% increase in turnover. Debates on postal law in the Dutch parliament have not yet been concluded. Final proposals are currently being considered, and the vote on them has been postponed to the second quarter of this year. TNT considers it important that the final letter of the postal law and the associated liberalization process remain consistent with the proposals submitted to parliament last year. The profitability of the courier division maintains an upward trend following a previous adjustment due to recent acquisitions. This growth is occurring in an environment characterized by significant pressure in local markets, while at the same time experiencing strong growth in international flows. Significant improvement was recorded in entities recently acquired by TNT in India, China, and Brazil, which were included in our results for the first quarter of 2007 for the first time. We look to the future with optimism and maintain our forecasts for 2007, presented in February of this year.
