Support our sponsors:

NZX 50 Index	4611.96	2.40
S&P/ASX 200	5191.20	0.00
Dow Jones Industrials	14839.80	21.00

Twitter

Facebook

RSS

Turners Auctions first-half profit soars 69% on cost cuts; shares jump 9.9%

Friday 21st August 2009

Text too small?

Turners Auctions, the largest single seller of motor vehicles in the country, reported a 69% gain in first-half earnings as it slashed spending in a declining market.

The shares jumped 9.9%.Net income was $1.4 million, or 5 cents a share, in the six months ended June 30, up from $812,000, or 3 cents a year earlier, the Auckland-based company said in a statement. The shares jumped 9 cents to $1.00 on the NZX today, and have surged 65% in the past six months.

“The biggest contributors to the reduction of costs have been reduced imports by Turners Fleet and a shift to an online marketing strategy,” the company said in a statement.

Turners Auction slashed its expenditure on advertising by more than $1 million and cut $6.4 million from its spending on imported vehicles.

Still, sales were down 17% to $34.7 million, with the total used car market down 9.4% on the year compared to 2008 and used Japanese imports down 40%, the company said.

Motor vehicle sales declined 12% in June from the same month a year earlier according to government data.

The company will pay an interim dividend of 5 cents a share, up from 2.5 cents a year earlier.

Businesswire.co.nz

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.