TNT, which split from Dutch telecommunications firm Koninklijke PTT Nederland in June, saw net profit grow to 365 million guilders in the first half, up from 310 million in the same period last year.

The results fell within expectations of analysts polled by Reuters, who had forecast profits of 328-402 million guilders.

"Assuming present exchange rates, the board of management further expects for the remainder of the year that net income will develop in line with the first six months of 1998," the firm said.

TNT revenues increased by eight per cent to 7.95 billion guilders and operating profit climbed nine per cent to 685 million. The logistics division showed the strongest growth, with revenue up 20.9 per cent to 1.1 billion guilders and earnings from operations jumping 20 per cent to 72million.

TNT said it had signed a five-year contract with Fiat to provide inbound logistics for manufacturing in northern Italy and also signed new contracts with the auto maker in Brazil and Poland.

"The combination of these new contracts with the existing outbound logistics contracts will provide one of the biggest automotive logistics service offerings in the world," TNT said.

In the Express division, solid growth in Europe was offset by the Asian currency crisis and a restructuring programme in the United States.

Express revenues rose by 6.3 per cent to 3.19 billion guilders and earnings from operations increased 12.7 per cent to 142 million guilders. "In Asia, the business grew nearly 10 per cent, but this could not compensate for the negative foreign exchange effect of 14 per cent due to the Asian currency crisis," TNT said.

The mail division was responsible for a 6.7 per cent hike in revenues to 3.8 billion guilders, due to higher volumes in business and direct mail. Earnings from operationswere up 7.9 per cent to 809 million guilders.

TNT said it used cash received from the demerger with KPN to pay off 2.1 billion guilders of debt, consisting of a 1.7 billion revolving credit facility and a high interest Swiss bond loan for 400 million. TNT is listed in Amsterdam, New York, London and Frankfurt.