Mainfreight's troublesome Australian domestic operations continue to improve and are expected to climb into the black by this time next year.
The company yesterday reported a $4.6 million net profit for the nine months to December 31, up 83 per cent on the same period the year before.
Whileit lost $5.1 million on its Australian domestic business its operating performance across the Tasman is getting better quarter by quarter.
In the three months to December, the Australian business on an ebitda basis (earnings before interest, tax and depreciation) was positive for the first time, at $49,000.
Mainfreight managing director Don Braid said he expected the Australia operations to be making a bottom line profit by the next December quarter. Issues over service levels, and network and owner-driver issues, were "virtually complete" and the business was in line for significant new sales contracts.
Less than a year ago, Mr Braid's predecessor, and Mainfreight's biggest shareholder, Bruce Plested, acknowledged that Mainfreight had bought a dog rather than a pup when it made its Australian acquisition in April 2000.
Group revenue was down 2 per cent over the nine months, reflecting Australia's ongoing struggles, but revenue excluding Australia was up 4.5 per cent.
The Australian international division lifted its operating performance (ebitda) by 58 per cent over the nine months and the New Zealand international division was up 82 per cent.
The operating performance of the New Zealand domestic operation was down by 1 per cent on the previous year. Mr Braid said while core transport remained strong, negative factors included the loss of Comalco revenues to international coastal shipping and one major bad debt expense.
