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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news