Mainfreight confident despite sluggish third quarter
UPDATED: Mainfreight shares tumbled this morning after the trucking company reported lower than expected third quarter results with freight volumes flat in the three months to December.
Mainfreight shares tumbled this morning after the trucking company reported lower than expected third quarter results with freight volumes flat in the three months to December.
By midday the shares [MFT:NZX] were down 90c or 8.7% at $9.45.
Despite the flat third quarter, the company still reported healthy numbers for the nine months to December with net profit of $46.8 million, up 35% on the same period a year ago.
The freight and logistics company said revenue rose 35.3% from a year earlier to $1.37 billion.
Earnings before interest, tax, depreciation and amortisation (ebitda) climbed 50.9% to a record $101.02 million for the nine-month period, the company said.
However, the third quarter saw lower than expected earnings with freight volumes and returns only matching the prior year levels.
December trading, in particular, was below expectations, Mainfreight said.
“Despite a lower than expected third quarter, we remain satisfied with this record nine month result. Market share gains and the continuing levels of profitability being experienced in all divisions early in this fourth quarter, provide confidence for a satisfactory year end result.
"More importantly, we remain well positioned for further growth during the 2012 and 2013 trading years.
"Trading into the fourth quarter has begun positively and we are confident of further improvements and increased trading through to our year end. In addition, market share gains have been made across most business units providing increased confidence in trading levels through 2012 and 2013."
Mainfreight attributed most of its sales revenue increase to the acquisition of the Netherlands-based Wim Bosman Group, which was purchased last year for $205 million.
Excluding the Wim Bosman results, Mainfreight's revenue was up 3.9% and ebitda was up 17.9%.
NBR staff
Tue, 14 Feb 2012
Tue, 14 Feb 2012
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Mainfreight confident despite sluggish third quarter
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