Freightways trims dividend despite posting 1% rise in half year profit

Freightways is showing impressive resilience, posting a 1% rise in first half net profit, but the current economic downturn has hurt investors in the form of a slightly lower dividend payout.

The courier company reported a net profit of $16.9 million in the six months to December compared with $16.8 million in the same period a year ago.

The profit came on the back of operating revenue of $177.4 million, up 10% on the $161.9 million in the previous prior period.

The company declared an interim dividend of 8 cents per share compared with 9.5 cents a share last year.

Earnings before interest, tax, depreciation and amortisation (ebitda)was $36 million, up 3% with ebit up 1% at $32 million.

The directors say while this was a “sound” result, Freightways will continue to be affected by the current economic downturn.

"In looking forward it is difficult to determine the impact of the economic turmoil on Freightways' operating environment.

"Due to this uncertainty, Freightways will publish in April a trading update that will provide high level financial results for the third quarter.

“In the medium to long-term, Freightways is exceptionally well positioned to reap the benefits of any improvement in the marketplace."