TNT is to internally separate its post and express delivery divisions from January 2011 and a capital market transaction separating their equity will follow ‘after further exploration’, the company said on Monday.

The company said in April it is considering a private sale and an initial public offering for the mail delivery unit, which has been hit by declining volumes following the liberalisation of the postal market and competition from email.
‘We have concluded that a full separation will best serve both units,’ CEO Peter Bakker said in a statement on Monday.
TNT booked net profit of €3m in the second quarter of this year with earnings pressured by a €168m provision for cost cutting. Second-quarter operating profit dropped 69% to €55m on turnover up 9.6% at €2.77bn.
TNTexpects addressed mail volumes to decline in the Netherlands by 7-9% this year, the company said.