CORRECTED - PREVIEW-TNT's Q3 fortunes tied to recovery, restructuring

(In Oct. 30 story, changes first paragraph to show forecast was for a fifth consecutive quarterly profit decline and not a fifth consecutive quarterly loss)

* Q3 results due Nov. 2, 0700 GMT

* EBIT seen down 24 percent

* Eyes on margins and progress with unions

By Greg Roumeliotis

AMSTERDAM, Oct. 30 (Reuters) - Dutch logistics company TNT NV (TNT.AS) is expected to post its fifth consecutive quarterly profit decline on Monday as it adapts slowly to a competitive environment abroad and attempts to restructure its domestic operations.

Investors will be looking for signs that Europe's second-largest mail and delivery company has made progress on improving the profitability of its express business while attempting to slim down its Dutch mail unit.

TNT is expected to post third-quarter earnings before interest and taxes (EBIT) of 159 million euros ($235.7 million), down 23.9 percent year-on-year, according to a Reuters poll of analysts. [ID:nLS37894]

"Although we believe in a V-shaped recovery for Express, with clear upside margin potential, we believe investors will remain sceptical on mail as long as there is no clear view on the impact of the Dutch Mail restructuring," KBC analyst Dieter Furniere said in a note.

Earlier this week TNT dismissed some of the proposals of postal unions on achieving savings, but left the door open for more negotiations. [ID:nLQ162280].

It is braced for a tough battle as it strives to cut overheads. In July it increased its annual cost savings target for 2009 to between 550 million and 600 million euros, up from 400 million. [ID:nLR113766]

STRIKE, RECESSION FEARS

TNT's main objective will be to keep unions at bay to avoid painful strikes of the kind that have paralysed British peer Royal Mail [GBPO.UL] while hoping that it has left the recession behind and that the economic recovery is sustainable. [ID:nLP708570]

Like many competitors, including its larger European rival Deutsche Post (DPWGn.DE), it has been struggling to cope with falling consumer demand while coming to terms with the liberalisation of the mail market. [ID:nLL75853]