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

 


KiwiRail Annual Results 2014 Information

KIWIRAIL 2014 ANNUAL RESULTS BRIEFING

Friday 29 August 2014

EMBARGOED UNTIL 12PM – FRIDAY 29 AUGUST 2014

2014 OVERVIEW

• 2014 was a challenging year for KiwiRail. Leading into it, the company had had steady growth in the three years prior.

• The operating surplus reached $108M in 2013 and on the back of that, solid growth was budgeted for the 2014 financial year.

• There were then two unexpected and high profile events.

• The first was the loss of a propeller on the Aratere.

• The second was asbestos contamination in our new freight locomotives.

• This was frustrating as the 2014 year had started off well: the freight business was set to exceed its revenue and profit targets for the year.

• On 5 November 2013 the Aratere lost her starboard propeller. Within 8 weeks the Stena Alegra was secured as a replacement. However, it did not have Aratere’s rail capacity.

• Aratere has been and continues to be critical to New Zealand’s freight movement. She provides 45% of our Cook Strait capacity, and provides an interisland service at critical times of the day for freight customers.

• In the third quarter asbestos containing materials were found in 40 new DL Freight locomotives. They had to be taken out of service to have the asbestos carefully removed.

• The temporary loss of 20% of KiwiRail’s locomotive fleet put added strain on the freight business in the second half of the financial year.

• Finally, there was a slowdown in export logging and dairy volumes from April to June this year as the prices for those goods fell on international markets. The company’s bulk, dairy and import / export customers make up 40% of revenue, so any movement there impacts on the bottom line.

• As a result of all these factors, the operating surplus in 2014 fell over 28% from 2013 to $77.5M. 2014 was extremely frustrating for KiwiRail, our customers and our stakeholders. However the company is determined to recover and continue its growth programme.

• While the financial side of the business is very important, KiwiRail has also been intensifying and refreshing its focus on safety. There has been a 45% year on year drop in total injuries but there is a long way to go to be best in class.

• KiwiRail is cautious about the outlook for 2015. While the economy is solid in some sectors, it’s patchy in the core commodity sectors that make up 40% of the company’s revenue.

FINAL_2014_results_summary_handout_media.pdf
FY14_Results_Announcement_FINAL_media.pdf

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news