KEY POINTS:
Mainfreight Group today reported a 25 per cent lift in third quarter net profit of $13.7 million saying conditions were improved on a year ago.
The country's largest listed transport company reported a 17.5 per cent gain in its net profit to $29.4 million for the nine months
to December 31.
"Trading during January and February has been encouraging, being both ahead of expectations and the previous year's results," managing director Don Braid said.
"This is expected to continue as the year progresses."
Investors applauded the result by sending Mainfreight shares up 10 cents to $6.03.
Strong performances in its domestic operations in this country and Australia and the international operations of CaroTrans were the highlights.
The net surplus for the nine months, including abnormal gains on the sale of Mainfreight's interests in LEP International and Pan Orient, was $89.8m.
Continuing businesses - including Mainfreight's Asian acquisition, and Target Logistic Services, its latest acquisition in the US - contributed earnings before interest, tax, depreciation and amortisation of $52.7m, an improvement of 14.9 per cent.
Taking foreign exchange effects into account, the increase was 18.4 per cent.
Total revenue from continuing businesses was $645.4m. Excluding acquisitions, sold businesses and foreign exchange movements, that represented an improvement of 8.8 per cent, the company said.
New Zealand domestic had strong third quarter sales, boosting revenues for the nine-month period 2.1 per cent to $210.5m. Ebitda year-to-date increased 13.0 per cent to $27.4m.
Mr Braid said a shortage of rail equipment hampered opportunities to move increased volumes on rail, and this was an ongoing concern.
New Zealand International exports were affected by the high New Zealand dollar, particularly in the perishable sector, and a decline in shipping rates.
Australian domestic growth saw revenues increase 19 per cent to A$98.62m ($115m). Ebitda improved 4.5 per cent to A$8.51M.
The logistics business has strong growth but earnings were lower, hit by expanding warehouse capacity to cope with higher demand. Earnings are projected to improve as the warehouse space is filled.
Australia international revenues rose 6.2 per cent to A$95.4m and ebitda rose 13.2 per cent to A$4.1m.
In the US, revenues improved 26.2 per cent to US$71.2m and ebitda rose 28 per cent to US$3.9m.
The company consolidated US company Target Logistics into the group accounts. It said Target's trading for the two months of November and December was satisfactory with revenue of US$28.9m and ebitda US$740,000. Mr Braid said further improvement from Target was expected despite the prospect of recession in the US.
Revenue at Mainfreight Express in Asia grew 19.1 per cent to US$15.9m and ebitda improved 24 per cent to US$1.7m.
Group cash flows rose to $34.2m from $29.8m.
- NZPA