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