Better interim from Mainfreight

By Phil Boeyen, ShareChat Business News Editor

Wednesday 21st November 2001

Transport group Mainfreight (NZSE: MFT) is still running a deficit in Australia but has clawed back the losses to record an overall improved interim result.

Although sales of $198 million for the six months ended September were slightly lower than last year's $200 million, net profit has risen 42% to $1.15 million.

The company says the result is in line with its expectations, with earnings before interest, tax, depreciation and amortisation at $9.182 million compared to $8.98 million previously.

In Australia the company's domestic division posted an Ebitda loss of $2.14 million for the period. However the loss in the September quarter of $788,000 was a big improvement on the $1.35 million deficit for the June quarter.

"Based on current volumes and activity, we expect the December quarter to produce strong improvement in trading results. New revenues are contributing to increased gross margins," Mainfreight says.

"A comparison of the December quarter to last year will demonstrate the real progress made in this business over a twelve month period."

Mainfreight's international divisions in Australia and New Zealand both reported better Ebitda figures, with the New Zealand result more than doubling to $1.17 million compared with last year, helped by strong trans-Tasman trading.

New Zealand domestic Ebitda grew by 5% to $8,06 million.

"Our supply chain divisions' growth continues to assist these results, although a poorer performance in warehousing has diluted the gains made in transport," the company reports.

Mainfreight shareholders will receive an interim dividend of 3 cents per share, the same as last year.

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