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Mainfreight disappointed with first half profit

Radio New Zealand logo Radio New Zealand 14/11/2017

The country's biggest transport company, Mainfreight, has reported a marginal lift in its first half as it struggles with quake disruptions at home and weakness in the United States and Asia.

The company's net profit for the six months ended September was $42.2 million, compared with $41.8 million last year.

Revenue was up 7 percent to $1.2 billion.

"Whilst our financial results are again ahead of the year prior, we had expected a better performance in this first half of our financial year," the company said in a statement.

It said the 10 percent boost from an increase in the amount of cargo handled in New Zealand was eaten into by higher costs because of the disruption to road and rail freight caused by the Kaikōura earthquake.

Australian revenue grew by more than 12 percent as the company chased business and expanded its network, while its European operations had 19 percent growth on improved volumes.

However, Mainfreight said the performance of its Asian and United States businesses remained disappointing, and it has replaced management in both regions to improve returns.

However, it increased its interim dividend and said it expects an improved full year result.


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