Improvement in Northland Port profit

By Phil Boeyen, ShareChat Business News Editor

Tuesday 14th May 2002

Northland Port Corp (NZSE: NTH) has posted a much improved operating result for the year ended March, helped by record cargo volumes and the benefits of rationalisation.

The port's operating profit for the year was $6.9 million, up from a deficit of $3.2 million last year.

"The result reflected a combination of record cargo volumes together with the long awaited rewards from the pain of rationalisation and the return to core business," says chairman Mike Daniel.

Net profit was $5.04 million, which is a return to form after last year's $954,000 result. The previous bottom line was knocked by an $8 million loss from the company's engineering subsidiary, Northport Engineering.

The latest result also includes a loss from Northport Engineering to the tune of $1.3 million. The subsidiary has now ceased operations.

Total operating revenue was $18.68 million compared with $27.5 million previously.

Mr Daniel says the first log cargo from the company's new joint venture port at Marsden Point, "Northport", is expected to be shipped in June.

"The $65 million development should be completed on time and within 5% of the original budget."

The port corporation plans to pay a final dividend of 7.5 cents per share on May 30, making a total of 11 cents per share for the year, exclusive of the 20 cents per share special dividends.

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