By Phil Boeyen, ShareChat Business News Editor
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Wednesday 7th November 2001 |
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The transport company says the first quarter is seasonally its weakest trading period and the result continued to reflect the costs associated with its major restructuring programme. In the same period last year the company lost $16.4 million.
Total first quarter revenue was flat at $143.3 million but freight revenue fell 1.7% to $107.4 million, mainly in the forestry and manufactured products sectors, the company says.
Passenger revenue however was up $3.2 million to $29.7 million due to volumes on the Interisland Line following introduction of a full year fast ferry service in December last year.
Excluding restructuring, costs were $142.1 million, a rise of $4.7 million or 3.4%. Tranz Rail says the increase is due to the introduction of the full year fast ferry and is off set by associated increased revenues.
CFO, Mark Bloomer, says while good progress has been made on the company's restructuring, the full annualised impact will not be seen until the 2003 financial year.
Mr Bloomer says the company is close to finalising the sale of its long distance passenger business, Tranz Scenic.
"This transaction has proven to be more complex than initially anticipated, however, good progress was made during the quarter and the transaction documentation and other details are now complete and settlement is imminent."
Tranz Rail recently reached agreement to sell the Auckland rail corridor for $81 million and says work has now commenced on selling the Wellington Tranz Metro business.
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