KEY POINTS:
Mainfreight earned more overseas than in New Zealand for the first time during the six months to September, the transport company said yesterday as it unveiled a huge jump in first-half profits.
The company reported a pre-abnormals net profit of $14.8 million, up 43 per cent from $10.3
million the previous year.
Of that, $6.7 million came from New Zealand and $8 million came from overseas - the first time offshore profits outstripped local earnings.
"Our foray into Australia, America and Asia is really starting to dominate our earnings profile for the future," said managing director Don Braid.
"We see ourselves as an international logistics business, [not just] a New Zealand business any more. We see ourselves as a global operation."
After including the gains from the sale of Mainfreight's stake in equipment hire business Hirepool and some workers' compensation levy refunds in Australia, the net profit was $32.4 million.
The full year would be "as positive as the first half", said Braid.
Shares jumped 67c to a high of $7.85 before closing at $7.80. The stock has risen from $2.10 two years ago and from $3.49 this time last year.
Driving the increase in profits were better earnings at the company's overseas operations.
In Australia, Mainfreight's domestic business had earnings before interest and tax of $4.4 million - up from $1 million in the first half last year. The Australian international business ebit was $5.4 million, up from $4.7 million.
In the United States, its ebit rose to $2.8 million, up from $1.2 million.
Forsyth Barr transport analyst Greg Main said Mainfreight posted "a very good result".
"The highlight was the performance of its Australian domestic business, which since it turned the corner has come on in leaps and bounds.
"And that's where we see the organic growth of the business really focused on over the next few years."
However, the company is also planning acquisitions. Braid said it would continue expanding in Australia, the US, Asia and ultimately in Europe, and looking to buy.
"In terms of acquisitions we've got a lot going on but it's all about buying the right business at the right price at the right time," said Braid.
The US had more buying possibilities than Australia "but we're being very cautious about that".
The company raised its half-year dividend to 7c per share from 5c. It said it would pay a special dividend of 28c from the profits of the Hirepool sale.
