Restructuring bites into Mainfreight quarterly profit

By Phil Boeyen, ShareChat Business News Editor

Wednesday 16th August 2000

Restructuring costs associated with an Australian transport acquisition are mainly to blame for a big drop in Mainfreight's quarterly profit figure.

The transport company recorded a net surplus of $99,000 for the June quarter compared with $1.345 million in the same period last year.

Despite the drop Mainfreight says the profit is satisfactory and is in line with expectations.

It says the net surplus was considerably down on last year due to restructuring costs after tax of $460,000 incurred with the purchase of K & S Express in Australia. Other costs associated with the acquisition include increased goodwill amortisation of $202,000 and $220,000 in interest costs.

Mainfreight also had to shoulder a share in the loss of its US-based Carotrans associate, which cost it $522,000.

The company says that overall the result was achieved on consolidated revenue of $96.3million, up from $70.7million last year. Directors say they are confident that core businesses, excluding restructuring costs, will exceed last year's result, but the final outcome will be decided on the timing of the turn-around of K & S Express.

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