By NZPA
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Monday 21st October 2002 |
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The company said its operating loss of $7.2 million was "in line" with its July 23 forecast operating loss of $7.3 million.
It added that the first quarter was typically the company's least profitable period when lower volumes of freight were carried.
Managing director Michael Beard said the company remained confident of achieving its operation performance targets for the balance of the year.
He said total revenue for the first quarter was $137.8 million, exactly in line with the forecast.
Tranz Rail, which posted a net loss of $122.7 million for the June year, said in July that it expected to earn $55.8 million before interest and tax (ebit) in the current year.
Brokers felt the result was largely in line with expectations and did not expect much share price action.
Shares in Tranz Rail closed up 2c to $1.53.
Mr Beard said bulk freight revenue of $32.2 million exceeded the forecast by $1.4 million. Forestry was the strongest performer, $2.5 million ahead of forecast on the back of stronger export demand for logs.
Operating costs of $145 million were also in line with the forecast. Service costs were $1.6 million higher than forecast, largely reflecting a change in the maintenance work scheduled on the rolling stock fleet.
Costs had also been incurred in connection with the extension and refinancing of the company's banking facilities -- an $800,000 increase in financing costs in increased interest and an adjustment in the method of accounting for the Aratere lease costs.
Casualties and insurance costs were $1.5 million greater than forecast due to the derailment at Te Wera in July, washouts and other incidents. They were offset by savings compared to forecast in fuel and labour expenses.
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