Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Earnings slump in Europe weighs on Mainfreight first half

Earnings slump in Europe weighs on Mainfreight first half; dividend unchanged

Nov. 13 (BusinessDesk) – Mainfreight, the global transport and logistics group, posted a 4.6 percent drop in first-half profit as an earnings slump in Europe offset gains in all of its other markets. It kept the first-half dividend payment unchanged.

Profit was $27.7 million, or 27.9 cents a share, in the six months ended Sept. 30, from $29.1 million, or 29.45 cents, a year earlier, the Auckland-based company said in a statement. Sales climbed 4.9 percent to $936 million.

Earnings before interest, tax, depreciation and amortisation in Europe tumbled 50.4 percent to 5.26 million euros as margins shrank in the face of “poor warehouse utilisation and activity, and poorly performing transport operations in Belgium and France.”

“We maintain our confidence in the long-term benefits of our European acquisition although we are disappointed with the financial performance over the last six months,” managing director Don Braid said in a statement.

Mainfreight acquired Netherlands-based Wim Bosman Group for 110 million euros plus earn outs last year to secure its foothold in Europe. Sales from the region fell just 1.4 percent to 122.4 million euros while costs including labour increased.

By contrast in its biggest market of New Zealand, ebitda climbed 8.7 percent to $24 million in the first half as sales rose 5.9 percent to $228 million. Australian earnings gained 22 percent to A$13 million on sales growth of 13.3 percent to A$209 million.

In Asia, ebitda rose 19.2 percent to US$1.37 million though in-country sales fell 4.2 percent and European trade “remains weak.”

US earnings rose 18.7 percent to US$8.12 million as sales gained 10 percent to $182 million, mainly reflecting a better performance from its Mainfreight USA business. Its Carotrans business lifted sales by 3.6 percent to about US$69 million, with ebitda little changed from a year earlier.

The company will pay a first-half dividend of 12 cents a share on Dec. 14, unchanged from a year ago.

“We are confident of maintaining this growth and profitability, and expect to see improving returns from our European interests,” Braid said.

The shares last traded at $10.40 and have gained 5.7 percent this year. The stock is rated ‘outperform’ based on six recommendations compiled by Reuters, with a price target of $10.67.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news