European operations for global logistics company Mainfreight
still appear to be hampering growth, and second-half trading
conditions are expected to weaken.
In a market update yesterday, managing director Don Braid
said full-year revenue was expected to be from $1.9 billion
to $1.95 billion and after-tax profit, excluding abnormals,
from $65 million to $67 million.
''Our first six months in the current financial year saw an
improvement in ebitda (earnings before interests, tax,
depreciation and amortisation) of 15% over the previous
comparable period, excluding our newly acquired European
operations,'' Mr Braid said.
As with its half-year report released last November,
Mainfreight continues to give financial updates without
detailed reports of its European operating, results
''excluding Europe'' being issued. Mr Braid was unable to
return calls yesterday.
Mainfreight shares rose from a low of $9.24 in early May to
peak at $12.15 in early February, but had since slipped and
were down to about $11.25 yesterday.
Craigs Investment Partners broker Paul Valk said the outlook
was ''well below expectations'', and he queried why there was
not more detail on the European outlook.
''Definitely, Europe and America are not giving them the
results they hoped for,'' Mr Valk said. New Zealand earnings
were ahead of last year, Australian earnings were well up on
last year but slowing, while Asia matched first-half trading.
European returns were better, but slower than expected, while
the United States was trading ahead of last year's levels,
earnings having eased during the past quarter, however.
For its previous half-year to September report, a poor
performance by European operations saw Mainfreight book a
decline in profit and before-tax earnings, despite an overall
increase of almost 5% in revenue to $NZ936 million.
European operations saw only a 1.4% revenue decline to $NZ190
million, but ebitda plummeted 50.4% to $NZ8.23 million.
Mr Braid said in yesterday's update that while there was
improved ebitda, up 15% on last year (excluding European
operations), the ebitda for the next six months would be in a
lesser range of 7%-9%. Main-freight's full-year results to
March will be released at the end of May.
Mainfreight bought Netherlands-based Wim Bosman logistics
company and its 14 branches in six European countries in
early 2011 for $NZ205 million.