Passengers down, freight up at Tranz Rail

The result is 33% lower than last year's $70 million profit, but that figure included a favourable tax adjustment of $57 million.

Tranz Rail says its passenger businesses fell by 3.3% to $127.1m, and blamed the fall on increased competition for Interisland services. But it says this was partly offset by an increase in its Tranz Scenic and Tranz Metro passenger numbers.

Freight business increased in most sectors, including forestry, manufacturing, coal, and minerals and aggregates, but revenue from fertiliser transport was down.

The company's sales revenue increased to $594 million from $569 million.

Tranz Rail says in particular the latest result was impacted by significant fuel price increases in the second half of the year, which also affect the latest quarterly results.

For the quarter to the end of June it says net profit was $8.4 million, down $32.5million compared with the same time last year. However it says the comparable quarter last year was affected by some abnormal items including redundancy costs, write-off of feasibility costs and a positive adjustment to tax provisions.

Total revenue for the quarter of $140.3 million increased by $2.5 million compared to last year's June quarter.

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