PostNL lifts FY outlook as cost savings ahead of target
AMSTERDAM Nov 4 (Reuters) - Dutch mail group PostNL raised its full-year outlook on Monday, saying it was ahead of schedule with its cost savings and reorganisation.
The company said it now expects underlying cash operating income in 2013 of 130-160 million euros ($175-216 million). It had previously given a range of 50 to 90 million euros.
"Cost savings and also price increases impacted the results positively," Chief Executive Herna Verhagen said in a statement.
"The reorganisation of mail in the Netherlands is gaining pace. Cost savings are being realised ahead of schedule and are compensating for the addressed mail volume decline".
PostNL has cut jobs, reorganised its depots and raised tariffs with effect from Aug. 1 in response to a decline in its traditional mail business and a weak economy in the Netherlands.
It reported third-quarter results in line with analysts forecasts. Underlying operating profit rose 22 percent to 60 million euros while revenue was flat at 1.02 billion euros.
Analysts in a poll for Reuters had on average expected an underlying operating profit of 57.6 million euros and revenue of 1.021 billion euros. ($1 = 0.7414 euros) (Reporting by Sara Webb; Editing by Louise Heavens)