By contrast, its New Zealand businesses all performed strongly in the first half, with sales rising 6.5 per cent to $243 million and EBITDA rose 14 per cent to $27.7 million.
In Australia, where Mainfreight exited the parcel business, total sales climbed 7.1 per cent to A$224 million and EBITDA rose 8.1 per cent to A$14 million. Earnings growth was driven by its Air & Ocean and Logistics divisions.
While Domestic Transport in Australia struggled as it coped with the removal of parcel freight, gross margins have begun to recover, with a return to "good sales growth".
Mainfreight Asia posted a 26 per cent gain in revenue to US$18.5 million and a 33 per cent jump in EBITDA to US$1.82 million.
Mainfreight will pay a first-half dividend of 13 cents a share, up from 12 cents a year earlier, payable on Dec. 13 with a record date of Dec. 6. The shares last traded at $11.51 and are little changed this year. The stock has a 'hold' rating and median price target of $11.88, based on a Reuters poll.
The company said it expects to lift earnings in the current year, with measures put in place to improved trading at Mainfreight USA likely to show up in the fourth quarter, while Europe will take longer to improve.
The stronger performance seen in the second quarter for New Zealand, Australia, Asia and its Carotrans business in the US had continued through to November, it said.