Sharechat Logo

Freightways Q1 profit falls

Thursday 28th October 2010

Text too small?

Freightways posted a 4% decline in first-quarter profit, reflecting higher bank margins, and said the recovery in the domestic economy will continue at a tepid pace.

The operator of courier firms including New Zealand Couriers, Post Haste, SUB60 and Kiwi Express said net income declined to $6.7 million in the three months ended September 30 from $7 million a year earlier. Sales climbed 4% to $85.4 million.

“Freightways’ express package and business mail divisions has reflected the slow pace of the economic recovery,” managing director Dean Bracewell said. “While a number of encouraging signs continue to emerge in some of our businesses, this is not yet the case across all businesses.”

Operating earnings, measured by EBITDA, rose 2% to $15.4 million and Bracewell said this showed the company has been able to improve its operating performance “despite a difficult operating environment.”

Shares of Freightways fell 0.3% to $3.06. The shares have declined about 10% this year while the NZX 50 Index is little changed. The stock is rated ‘outperform’ based on the consensus of six recommendations compiled by Reuters.

The company’s information management unit had a 26% jump in operating earnings in the latest quarter, prompting Freightways to decide to invest in additional storage capacity in Sydney, Perth, Adelaide and Auckland, it said.

The company extended its service footprint in Australia by establishing its Shed-X brand in South Australia and New South Wales, it said.

“The information management division is expected to continue its sound growth,” Bracewell said.

  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:

Freightways meets guidance with 6 percent gain in profit before items, sees similar 2014 growth
Freightways profit to increase 6 percent in 2013 and 2014, lagging expectations; shares drop
Freightways 1H profit rises 11 percent to record, meeting estimates, see slow growth ahead
Freightways lifts September quarter profit by 14 percent
Freightways beats estimates gain 24% in FY profit, sees growth in 2013
Freightways buys Dataprint for up to $6.5 million
Freightways first-half profit jumps 20%, lifts dividend
Freightways continues buy-up of info management firms with Australian acquisition
Freightways reports strong first quarter, seeks directors' fee hike