Freightways reported a 7 percent rise in full year net profit
to $34.6 million, even as the earnings performance of the
core express package business dropped below the prior year.
Revenue from ordinary activities for the 12 months to the end
of June was up 5 percent to $339.5m, while earnings before
interest, tax, depreciation and goodwill amortisation
(ebitda) rose 3 percent to $70.5m.
Included in the ebitda numbers was a one-off profit of $4m -
a $3.9m gain in the net profit - from the sale and lease-back
of a property in Wellington, Freightways said today.
The company is to pay a final dividend of 8.5c per share,
compared with 9.25c last year.
Freightways also said it was introducing a dividend
reinvestment plan in light of the current, exceptionally
uncertain operating environment.
The plan would provide all eligible existing shareholders
with the opportunity to increase their equity stake in
Freightways, should they choose to do so.
It would also serve to further strengthen Freightways'
balance sheet by introducing new equity and by enabling the
company to maintain its current level of cash reserves.
The core express package business contributes most of
Freightways' revenue and earnings. The company operates the
brands New Zealand Couriers, Post Haste Couriers, Castle
Parcels, NOW Couriers, SUB60, Security Express and Kiwi
Express.
The economic downturn led to lower express package volumes
from some of Freightways' existing customers, Freightways
said.
Volumes were continuing to fluctuate week to week creating
difficulties in financial forecasting and when planning near
term operational capacity.
"Overall, the full year earnings performance of Freightways'
express package business is below the prior year," the
company said.
"The just completed fourth quarter has been particularly
quiet when compared to the same period in the prior year."
In the information management division, full year earnings
performance was well ahead of the prior corresponding period,
Freightways said.
Bookmark/Search this post with:
A name, residential address, and (preferably residential) telephone number is required from readers who comment on ODT Online. These details will not be visible to site visitors.