Sharechat Logo

Australia and US drag down Mainfreight half-year

By Phil Boeyen, ShareChat Business News Editor

Tuesday 21st November 2000

Text too small?
Mainfreight has announced an interim profit of $812,000, down 73% from last year's $3 million result due to costs associated with its K&S acquisition in Australia and a loss at its US associate company Carotrans.

Restructuring of K&S Express cost $807,000, interest cost of the purchase was $440,000 and there was an increase in goodwill amortisation of $404,000. The loss at Carotrans, in which Mainfreight has a half-share, was $793,000.

Despite the negative effects of the two companies, Mainfreight's MD, Don Braid, says the directors are very happy with the established businesses, with third quarter results looking very strong.

"Considerable gains in the new businesses have been made in Australia and America. We have an unrelenting focus on profitability in Australia and USA acquisitions."

Mr Braid says Mainfreight's Australian operations have been extensively restructured, and the business there is expected to break even before April 2001. In the US he says the second quarter for Carotrans was much improved, and new Carotrans management is moving to streamline the business on to profitable trade lanes.

Mainfreight's revenue for the six months to the end of September stood at $200 million, up from $149 million last year. Excluding acquisition revenues, year-to-date sales were up 10.8% on 1999.

In New Zealand the company credits its domestic operations with making a significant contribution to the half-year result, with sales rising nearly 8%, gross margins improving and provincial branches benefiting from the rural upturn.

If the new acquisitions of K&S and Carotrans are excluded from the half-year result, the company's established operations produced a net surplus of $3.9 million, up 22% on last year.

However the company's New Zealand international business remains significantly down on last year with earnings before interest, tax, depreciation and amortisation falling from $932,000 to $525,000, mainly due to a drop in Lep NZ's export gross margin.

Mainfreight has declared an interim dividend of three cents per share.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Mainfreight gets 8.2M euros to settle claim with former Wim Bosman owners
Mainfreight earnings lag last year's, Australian unit struggles as parcel business weighs
Mainfreight flags plans for claim against former Wim Bosman owner
Mainfreight’s Braid 'impatient' on fix for Europe after region's underperformance dents earnings
Mainfreight earnings growth stalls as European struggle offsets record sales
Mainfreight warns of softer second half, flat earnings
Mainfreight's Braid says KiwiRail ferry strike ‘disruptive’ in peak week
Mainfreight's first half profit drop by 4.6 percent; dividend unchanged
Mainfreight
Mainfreight 1Q profit falls 15% as Europe dents global sales

IRG See IRG research reports