High-tech upgrade planned

By Duncan Bridgeman

Friday 13th August 2004

Freightways expects significant efficiency benefits from changes to its IT system, chief financial officer Mark Royle said at a results briefing this week.

The company is replacing its outdated hardware platform over the next three years. It is setting aside $2 million for the investment, which will run across all three of its business divisions.

The company was about six months into the project and expected to have it completed by December 2006.

Meanwhile, analysts were quick to upgrade their earnings forecasts for Freightways following the company's better-than-expected full-year profit result this week.

The company reported a bottom-line profit of $15.4 million for the June year up on the $13.2 million prospectus forecast last September.

ABN Amro lifted its 2005 profit forecast 7.1% to $18.1 million on the back of management's expectation of no material change to the favourable trading environment.

First NZ Capital has revised its profit forecast to 20.7 million (up 4.1%) for 2005 and increased its 12-month price target to $2.60 a share.

Comments from our readers

No comments yet