Sharechat Logo

Port of Tauranga lifts full-year guidance as volumes rise

Friday 11th June 2010

Text too small?

Port of Tauranga, New Zealand’s biggest export port, raised its full-year earnings guidance by as much as 11%, citing a “strong” increase in volumes. Shares of the company rose 3.8%.

Normalised net profit in the year ending June 30 will be $49 million to $50 million, chief executive Mark Cairns said in a statement. That’s up from an earlier forecast for profit to be similar to the previous year’s $45.2 million and the consensus of analysts of $47 million.

The upgrade is “as a result of the strong increase in volumes, particularly over the last quarter,” Cairns said.

Full-year net income, though, will include a one-time non-cash adjustment to income tax payable as a result of legislation announced in the Budget to reduce the tax depreciation rate on buildings to zero.

Actual tax payable won’t change until the 2012 year “with the additional tax payable due to the tax depreciation estimated to be about $400,000 a year,” the company said.

The increase in tax will be more than offset by the company tax rate reduction to 28% in 2011/12 which will reduce tax payable by approximately $1.5 million a year, it said.

Shares of the port company rose 25 cents to $6.80 and have fallen 5% in the past month, about matching the decline in the NZX 50 Index.

Government figures yesterday showed the terms of trade posted its biggest increase since the mid-1970s in the first quarter, driven by exports such as dairy products.

  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:

Port of Tauranga may increase dividends, make extra payments, as spending returns to normal
Port of Tauranga shares fall to 3-week low after losing major log marshaling contract
Success a burden for Port of Tauranga
Port of Tauranga prepares for big ships, reports record profit
Port of Tauranga makes first foray into South Island, with $21.6M PrimePort deal
Port of Tauranga buys $37.2 mln property to expand South Auckland operations
Port of Tauranga chairman Parker will retire in October after 17 years as a director
Port of Tauranga rewards investors with 1H dividend hike, retains FY guidance
Port of Tauranga spends $34M on log marshaling business
Asciano to buy Port of Tauranga's 50 percent stake in C3 for $70M