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.
