Freightways increases half-year revenue by 7%
Describes "challenging" market conditions; increases dividend.
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Freightways (NZX:FRE) has produced strong revenue and earnings growth for the half year to December 31, in what it says was still a "difficult" trading market.
The company has reported consolidated operating revenue of $176 million for the half year, 7% higher than the same period the previous year.
Revenue in the second quarter was 9% above the corresponding period in 2009, whereas revenue in the first quarter was up by 4%.
Ebitda was up 6% to $34 million, with second quarter ebitda up 9%, while first quarter ebitda was up 2% on the previous year.
Consolidated net profit after tax for the half year was $16 million, up 9% on the previous year.
Freightways has declared an interim dividend of 7.25c per share, fully imputed at a tax rate of 30%.
This represents a payout of about $11.1 million compared with $10.8 million for the previous year’s interim dividend of 7c per share.
Managing director Dean Bracewell said two major events had affected Freightways recently: the Canterbury earthquake and the flooding in Queensland.
Operating revenue in the core express package and business mail division was $140 million and ebita was $23 million, both up 5%.
Operating revenue in the information management division was $37 million for the first half, up 14% from the previous year.
Mr Bracewell said despite the solid result, Freightways has not yet experienced increased volumes across all sectors of its customer base.
He cautioned, “it is also too early to suggest the growth we have experienced, particularly in the second quarter, is sustainable.”
NBR staff
Mon, 14 Feb 2011
Mon, 14 Feb 2011
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Freightways increases half-year revenue by 7%
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