Lyttelton profit sinks, income flat

By Phil Boeyen, ShareChat Business News Editor

Friday 10th August 2001

Canterbury port operator Lyttelton Port Company (NZSE: LPC) has posted a lower year profit of $13.66 million.

The result to the end of June was 8% below last year's $14.86 million result. Sales were flat at $58 million while earnings before interest and tax fell 5% to $22.1 million.

Chairman Brent Layton says the reduced profit reflects tight trading conditions and increased costs.

"Operating expenditure was up 4% reflecting increased dredging costs in the first six months of the financial year and higher fuel costs. Financing costs also increased by 32% as a result of the special dividend paid in September 2000.

"The static revenue figure occurred despite export coal volumes increasing 23% to a new all-time high of 1.7 million tonnes. Total tonnage at the port increased 4%, with outstanding performances from the car, log and fertiliser trades."

However Dr Layton says the increases were not enough to offset flat volumes and lower average returns per unit of cargo in other areas of the business.

Managing director, David Viles, says in recognition of the flat performance in the critical container trade, the company has been reorganised to focus on business development in the container and other trades.

The company has recently been advertising a number of marketing and business development positions.

Directors have declared a final ordinary dividend of 6.75 cents per share bringing the total year's dividend to 10.25 cents per share, unchanged on last year.

The Christchurch City Council's is the port company's major shareholder.

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