Mainfreight first-half profit rises 9.5%

By Paul McBeth

Friday 21st November 2008

Mainfreight, New Zealand�s largest trucking company, posted a 9.5% rise in operating profit after tax on the back of strong domestic sales volumes and rapid growth in the US market.

Profit rose to $17.2 million in the six months ended September 30, from $15.7 million a year earlier, the company said in a statement. The year-earlier result excludes a one-time gain from the sale of LEP and Pan Orient that lifted net income to $77 million. Sales jumped 63% to $625 million, reflecting a surge in US revenue.

�A continuing strong market presence has resulted in an increase in revenue,� the company said in a statement. �In the current environment we are adopting a cautious, prudent approach to costs and capital expenditure.�

The company�s American businesses, Mainfreight USA and Carotrans, lifted revenue in the US sales by 254% to $218.8 million. A quarter of the company�s sales came from the New Zealand domestic market, which increased 15% to $153.5 million. The company is scheduled to start a new air-freight facility in Auckland this month and said it is already attracting interest from customers.

The company said its Asian market share �remains small in light of what is available.� Sales in Asian increased 29% to $11.9 million, while EBITDA decreased 14% to $1.4 million.

Mainfreight�s share price fell 1.6% to $4.25. Its price has slumped almost 40% over the last 12 months.

The company raised its first-half dividend to 8.5 cents per share from 8 cents.

www.businesswire.co.nz

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