Mainfreight warns revenue levels 'less than expected'

Wednesday 12th October 2016

Mainfreight, the transport and logistics group, has warned investors first-half revenue will be less than expected due to falling ocean freight rates hitting billing levels.

In slides published to the NZX as part of an investor day held at its Epping base in the Australian state of Victoria, Mainfreight estimates revenue will be between $1.15 billion and $1.17 billion in the six months to the end of September, compared to $1.11 billion in the same period a year earlier.

Earnings before interest, taxation, amortisation and depreciation are expected to be between $85-and-$87 million compared to $71.6 million in 2015, with a net profit of $41-to-$43 million compared to $33.1 million.

Mainfreight said results from New Zealand had been stronger than expected, while results in Europe, Australia, and Asia had improved. The United States operations had improved, but "not markedly".

The comparable period in the previous year was poor for Mainfreight, with its full-year results rescued by a focus on cost control and improved margins in the second half of the year.

In today's trading update, Mainfreight says momentum continued into October, but the comparable period was "strong" and results from Asia would reduce due to a marked decline in non-repeat air freight volumes.

It's half-year results will be published on Nov 9.

Shares of Mainfreight rose 0.2 percent, or 3 cents, to $18.03. They're up 15 percent since the start of the year, outperforming the broader NZX50 which has increased 13 percent.

BusinessDesk.co.nz

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