Net income for European mail and express operator TNT fell 58 percent in the first quarter after the company discontinued a joint venture with Postbank and wrote off restructuring charges in its mail division.

Overall revenue for the quarter was $4.2 billion, up 1.8 percent compared with last year's first quarter. Net income for the period was $280 million, compared with $667 million a year earlier.

On March 5, Postbank and TNT Post announced the end of their joint venture. Discontinued operations were responsible for $305 million in the first quarter last year. TNT earned nothing from that source this year in the first quarter, depressing an already soft net income picture.

Declining mail volume in the Netherlands and the loss of a large customer for addressed mail reduced that sector's revenue a little less than 1 percent to $1.7 billion. Operating revenue for mail dropped 16 percent to $303 million after $18.7 million lower positive net one-offs and $11 million in restructuring costs.

Revenue in the Express division increased 3.3 percent to $2.5 billion, but operating revenue there fell 18.5 percent to $166 million.

The company reaffirmed its outlook for 2008. "Although financial markets and global economic contexts remain volatile, TNT so far experiences market circumstances in line with its outlook as given in February. We see economic activity in our markets at the same level as in Q4 of last year as indicated earlier," said CEO Peter Bakker in a statement.