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NZ Post profit hit by one-off costs

New Zealand Post Group today confirmed a net profit after tax of $1.3 million for the financial year to the end of June.The state-owned enterprise this month predicted it would merely break even due to declining mail volumes, tight margins in the banking

NZPA
Fri, 20 Aug 2010

New Zealand Post Group today confirmed a net profit after tax of $1.3 million for the financial year to the end of June.

The state-owned enterprise this month predicted it would merely break even due to declining mail volumes, tight margins in the banking sector and a series of significant one-off items.

Chairman Jim Bolger said that in view of the difficult trading environment the company drew some satisfaction from holding the underlying operating net profit of $73.6 million to just under 5% of the $77.2 million normalised earnings.

A series of non-recurring one-off items totalling $72.4 million reduced the reported profit to $1.3 million.

They were historical and beyond NZ Post's control, he said.

The one-off costs were:

* $19.8m arising from a taxation change introduced in the May 2010 budget affecting the depreciation treatment of property assets.

* $17.4m of write-downs and provisioning in the international mail business.

* $5.3m relating to the write-down of various assets, including property and aircraft, whose value has been affected by economic conditions, and other adjustments.

* A reduction of $29.9m associated with ParcelDirect Group, NZ Post's 50:50 courier joint venture with DHL in Australia.

Mr Bolger said the non-recurring items were largely non-cash expenses.

"As such, our cash position remains strong and the group's commercial value, as well as our debt servicing capability, is not materially affected," he said.

The board declared a total dividend for the year of $6.42m.

NZPA
Fri, 20 Aug 2010
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NZ Post profit hit by one-off costs
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