Frieghtways half-year profit up 9%

Monday 14th February 2011

Freightways is reporting a 9% rise in half year net profit to $15.8 million, as volumes from many customers improved.

Revenue for the six months to the end of December was up 7% from a year earlier to $176.2 million, with the second quarter up 9% and the first quarter up 4%.

A dividend of 7.25c per share is to be paid, up from 7cps a year earlier.

In its core express package and business mail division, which contributes about 80% of revenue and earnings, operating revenue was up 5% from a year earlier to $140 million, with the second quarter up 7% and the first quarter up 3%, Freightways said today.

"As the half year progressed, the improving performance of the express package and business mail division gained momentum, assisted by modest price increases, some market share gains and a return to increasing volumes from many existing customers."

The company said it was too early to suggest the second quarter growth was sustainable, so it was remaining cautious in its outlook.

"We are nevertheless encouraged by this half year result and are optimistic about a further gradually improving marketplace," Freightways said.

NZPA

Comments from our readers

No comments yet