Lower express freight volumes led to an 8% earnings drop for transport company Freightways but better times ahead are expected.The company hast posted an interim net profit after tax (NPAT) of $14.5 million for the half year – 8% down on the previou
Lower express freight volumes led to an 8% earnings drop for transport company Freightways but better times ahead are expected.
The company hast posted an interim net profit after tax (NPAT) of $14.5 million for the half year – 8% down on the previous period, normalised to remove an “extra” week during the 2009 year.
Revenue of $165 million for the half year was 4% below the previous normalised period.
Earnings before interest, tax, depreciation and goodwill amortisation (ebitda) was $32 million – 8% lower than the previous period.
However, the company has signalled this as a satisfactory result despite tough tradition conditions during the six-month period.
Freightways has declared an interim dividend of 7c a share, which represents a payout of approximately $10.8 million compared with $10.3 million for the previous corresponding period interim dividend. The dividend will be paid on 31 March 2010 based on a dividend record date of 12 March 2010.
Managing director Dean Bracewell said today the domestic economy was showing signs of improvement, which has been evident in some areas of the group.
“However, we have yet to experience sustained, across-the-board improvement, which indicates there is still continuing market volatility. It also suggests the impact of Freightways of an improving economy will be gradual,” he said.
Freightways operations express package and business mail operations and owns New Zealand Couriers and Post Haste companies along with a number of other network and point to point services and business mail service DX Mail.
Freightway shares this morning fell 3% following the release of the interim results to $3.10 (NZX: FRE).
