Mainfreight profits leap 77% for record interim result
Mainfreight expects the momentum behind its record interim result to continue in the third quarter.
A 77% leap in half-year net profits is giving Mainfreight confidence to bring capital expenditure back on the boil – to levels last seen before the global financial crisis.
The freight and logistics company has revealed a record net profit for the six months to September of $29.08 million – a $12.61 million increase on the same time last year ($16.47 million).
Sales rose $248 million or 38% to $892.9 million as activity increased across most divisions in the group, with that momentum expected to continue into the third quarter.
Managing director Don Braid said better trading conditions had given directors confidence to commit to capital investment in land and buildings at levels similar to those prior to the global financial crisis.
Building projects across New Zealand, Australia, Romania and Belgium will start during the next two years.
Australia International was the only division to see revenues decline, falling 3.3% or $A3.08 million to $A89.27 million as export volumes, particularly air freight, declined and the sector became more competitive.
But domestic Australian operations were the stand-out division for the group, where sales rose $A13.11 million or 15.9% to $A95.59 million.
Mr Braid said Mainfreight’s small market share of the world’s logistics industry provided substantial opportunity.
“Our developing global network and our diversified product mix across all sectors, will provide a buffer against any expected downturn," said Mr Braid.
“In addition, specialising in LCL freight consolidation, with a focus on food and beverage, and related categories which withstand economic fluctuations, will continue to provide growth in our networks.”
Mainfreight is increasing its interim, fully tax-paid dividend by 3c to 12c, to be paid on December 16.
Shares in Mainfreight remain unchanged at $10.22 this morning.
Georgina Bond
Thu, 10 Nov 2011
Thu, 10 Nov 2011
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Mainfreight profits leap 77% for record interim result
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