Mainfreight delivers 9.9pc profit rise for Q3

By NZPA

Wednesday 19th February 2003

Transport firm Mainfreight has delivered a 9.9 percent increase in its third quarter net profit to December.

The company said it had recorded a net surplus of $3.78 million compared to the same period a year before, and a nine month profit of $6.29 million, up 37 percent.

Total revenues for the nine months were up 7.1 percent to $325.2 million, and $115 million for the third quarter, up 9.1 percent.

Mainfreight reported improvements in all its divisions except its Australian domestic operations.

The combined Australian activities had positive earnings before interest, tax, depreciation and amortisation (ebitda) of $2.186 million over the nine months (up 44 percent), but third quarter profitability had not eventuated in the domestic operations.

Australian executive director Chris Dunphy had resigned and would leave Mainfreight Distribution after a replacement was found.

In New Zealand, increased volumes boosted operations in the third quarter, traditionally the strongest period of the year, but the company noted rural spending had dropped from the previous year's highs.

A significant new customer was expected to help the division in the fourth quarter.

Mainfreight's operations in Asia continued to improve, growing 43 percent on the corresponding period in 2001.

A container shortage from Asia and a United States waterfront strike had adversely affected Mainfreight's international arm in Australia and New Zealand in the third quarter, but were on the road to recovery.

The Australian international arm had outperformed the previous year's levels in all three quarters while its New Zealand counterpart picked up in the third quarter but remained down on 2001's nine month result.

Mainfreight said its outlook for the rest of the year was ahead of the previous year's. Its fourth quarter might be affected by fuel pricing volatility but it believed it was well positioned to manage the issue.

Comments from our readers

No comments yet