AMSTERDAM Aug 6 Dutch postal group PostNL
, under pressure to improve performance as mail volumes
decline, warned that its full-year profit would be at the low
end of its target range as it struggles to overhaul its domestic
PostNL, the largest shareholder in TNT Express,
the parcel delivery company being bought by UPS for 5.2
billion euros ($6.42 billion), said its underlying cash
operating income in 2012 would be at the bottom end of a 110
million - 160 million euro range.
"The outlook is sensitive to further developments" in the
Dutch real estate market and implementation of a long-term
corporate restructuring, PostNL said in a statement.
PostNL said underlying second-quarter operating profit
(EBIT) rose 9 percent to 97 million euros on revenue up 1.6
percent at 1.04 billion.
However, underlying cash operating income in the quarter
fell a sharp 60 percent to 10 million euros, due to a poor
performance in the Dutch mail operations and higher provisions.
PostNL was forced to delay the implementation of an
electronic mail sorting system in its core Dutch mail business
due to technical problems, resulting in higher delivery costs
and a delay in restructuring plans.