Our capacity is being scaled up again so that we can process higher volumes in the second half of the year. The planned investments of approximately € 150 million for the expansion of our sorting capacity are on track. Our innovative sorting center especially for small packages is expected to be operational in 2021. The same applies to two new parcel sorting centers, one in Belgium and one in the Netherlands. With our combined postal network, we can make postal delivery in the Netherlands accessible, reliable and affordable in an environment that is increasingly digitizing.
Herna Verhagen, CEO PostNL: ‘We were able to play an important social role during the Covid-19 crisis by continuing to provide our services, despite the challenges of the pandemic. At the same time, we have taken extensive measures to ensure a safe and healthy working environment for our people, partners and customers. We respect the guidelines for healthy working and maintain sufficient distance in our work processes. In addition, we have taken additional measures in our business activities and at our locations. I am proud of our people. Together we have proven the strength of our business model under difficult circumstances. ‘
We delivered a strong financial performance with our business in the second quarter of 2020. Building on the development of the results for the first half of the year, we foresee a normalized EBIT for the whole of 2020 that will be well above the initially indicated bandwidth of between € 110 million and € 130 million. We also foresee a strong improvement in free cash flow. While uncertainty around the global impact of the pandemic appears to be mounting, we are confident in our ability to deliver a very solid performance for the full year 2020.
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