Package carrier Freightways, which posted a decline in annual revenue and profits yesterday, has reiterated ongoing economic uncertainty reflects the likelihood of only a gradual rise in its fortunes.
Operating revenue was down 3% from $339.4 million to $328.4 million while after-tax profit declined 33% from $34.5 million last year to $23.1 million for the year to June 30.
The profit decline was underscored mainly by the inclusion of a $5.7 million abnormal tax charge, due to the Government's tax changes on building depreciation.
Freightways' shares remained stable after the announcement, with few trades and the price sitting at $2.68.
A final dividend of 7c per share was declared, totalling $10.8 million, compared with 8.5c last year.
Company chairman Wayne Boyd said in a market statement yesterday its overall lower express package volumes from existing customers meant less revenue was earned during the last financial year than in the previous year.
"We have not yet experienced a sustained, across-the-board improvement in all our businesses, which indicates to us ongoing market uncertainty and suggests that the impact on Freightways of an improving economy will continue to be gradual," Mr Boyd said.
Freightway's core Express Package and Business Mail division contributes 80% of its revenue and 78% of its earnings through its brands of New Zealand Couriers, Post Haste Couriers, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express and DX Mail.
Mr Boyd said a "more serious impact on performance" was cushioned by a focus on cost management, service quality and actively growing market share; having won Australia Post's inbound transtasman deliveries to New Zealand and launched two "sub-brands", Stuck and Pass the Parcel, for Trade Me customers.
