PostNL profit drops, but dividend aim reaffirmed

[TrueBlueTerrier]

http://www.marketwatch.com/story/postnl ... 2016-08-08" onclick="window.open(this.href);return false;

PostNL N.V. PNL Monday reported a 28% fall in its headline profit, missing consensus forecasts, but backed its guidance and reiterated its commitment to restart dividends next year.

The Dutch delivery firm made an underlying cash operating income, which strips out one-off items, of 47 million euros ($52.11 million), compared with EUR65 million a year earlier, on revenue unchanged at EUR824 million.

Consensus forecasts for underlying cash operating income was EUR51 million, based on 13 analysts forecasts and taken from the company's website.

PostNL said it expects 2016 underlying cash operating income of around EUR220 million to EUR260 million, and EUR230 million to EUR270 million in 2017.

Chief Executive Herna Verhagen said the second-quarter earnings are in line with management expectations.

"The trend in parcels continues to be very solid, recording another period of strong volume growth and improving results," he said. "Based on the overall performance for the first half of 2016, we are confident on delivering our previously indicated full-year outlook for 2016," Mr. Verhagen said.

"We confirm our expectation to gradually improve our underlying cash operating income, starting in 2017, to between EUR285 million and EUR355 million by 2020. This, together with the sale of the stake in TNT Express, and the comfortable headroom if interest rates were to decline further, support our expectation of and commitment to resuming our dividend in 2017," he said.