Freightways' first quarter revenue rose 4 per cent from a year earlier to $85 million, with strong growth from its information management division.
As expected, the core express package and business mail division had reflected the slow pace of economic recovery, and the company remained cautious on the outlook for
the division, Freightways said yesterday.
Overall earnings before interest, tax, depreciation and goodwill amortisation for the three months to September were up 2 per cent to $15.4 million from a year earlier. Net profit for the quarter fell 4 per cent to $6.7 million because of the higher cost of bank margins compared with a year earlier.
The information management division had operating earnings growth of 26 per cent, and was expected to continue its sound growth. While the cost of increased capacity would start to come to bear throughout the balance of the 2011 financial year, the benefit from the recurring nature of the revenue would drive sustainable long-term value.
Investment in additional capacity for the information management division in Melbourne and Wellington had been well received by the market, and demand for the services in those places had accelerated, Freightways said.
That growing demand had led to decisions to invest in extra storage capacity in Sydney, Perth, Adelaide and Auckland next year.
- NZPA
