Sharechat Logo

KiwiRail 1Q revenue running ahead of budget

Friday 26th October 2012

Text too small?

KiwiRail, which runs the nation's railway network, is tracking ahead of expectations after the first three months of the financial year, but is still conscious of the need to keep a lid on costs.

The state-owned enterprise's group revenue was ahead of budget in the first-quarter on increases in forestry, import/export and domestic freight volumes, chief executive Jim Quinn told a public meeting in Wellington. The rail operator had also reported increases in freight on the interisland ferries, and its passenger services were in line with expectations.

"The outlook for this financial year is promising as group revenue is slightly ahead of budget," chairman John Spencer said. "We have to remain focused on cost containment and a better way of operating to ensure we meet our targets and drive as much of the revenue growth as possible to the bottom line."

Earlier this month KiwiRail mothballed the Napier-Gisborne line saying the cost of re-opening the track wasn't worth it.

The rail operator is on a drive to strip out $200 million in annual spending if it is to meet forecast earnings of $64.6 million by 2013. The railway operator missed its statement of corporate intent revenue target of $737 million, as it posted annual sales of $71.58 million in the latest financial year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis
Graeme Hart trims global packaging empire with US$615m asset sale

IRG See IRG research reports