TNT has posted a net profit in the first quarter nearly double that of the same period a year earlier on strong gains in the express sector, but said it remains cautious about what it sees as a fragileeconomic recovery.

TNT’s net profit jumped to US$190 million from $101 million, with the integrator realising a 54 per cent rise in operating profit to $334 million. Revenue increased 12 per cent to $3.65 billion — including $2.1 billion from the express division alone, which expanded sales 15 per cent. The express unit’s operating profits rose to $100 million from $30.6 million.

CEO Peter Bakker said express volume in recent weeks has almost returned to levels seen in the first quarter of 2007, before the global economic recession, but added a caveat that “some customer feedback indicates that this is partly driven by re-stocking of supply chains.”

TNT expects express volumes, revenues and earnings to be “well above” 2009 levels, although TNT officials say pricing and yield remains under pressure and costs could expand.

Mail volume, which declined nearly 10 per cent in the first quarter, is forecast to fall by 7-9 per cent in the full year.

TNT last month unveiled plans to spin off its mail business prompting speculation of an eventual sale of its express unit.