TNT releases Q3 results

Europe's recessionary environment puts pressure on TNT's results. Group revenues increased by 1.5%, to reach €2.69 billion (Q3 2007: 2.65bn). At constant foreign exchange rates, this would be a 4.3% increase. EBITDA dropped 12% to €297 million (Q3 2007: €344m).
Express operational revenue was up 5.9% to €1.66 billion (Q3 2007: €1.62bn), although EBITDA dropped 13% to €154 million (Q3 2007: €185m) and the operating margin dropped to 6% (Q3 2007: 8%).
Mail revenues were up 1.7% to €964 million (Q3 2007: €966m).  EBITDA dropped 11.4% to €147 million (Q3 2007: €166m) and operating margin dropped to 12% (Q3 2007: 14.1%).
Other Networks revenue was up 6% to €72 million (Q3 2007: €67m), while EBITDA remained unchanged at €5 million.
The company pointed out that economic conditions in Europe worsened considerably in September and October, which has led to a significant drop in premium air volumes in Europe. TNT assumes the economy will remain under the same pressure for the rest of the year.
For FY2008, TNT expects both the Express and Mail business units to post single-digit organic revenue growth and operating margins of 9% and 16.5% respectively.