First Quarter Profit Warning From Tranz Rail

10 October 2000

First Quarter Profit Warning From Tranz Rail

Tranz Rail has issued a profit warning on its first quarter (1 July – 30 September) financial result.

At its annual meeting today the company said its result for the first quarter of the 2001 financial year will be negatively impacted by a huge leap in fuel prices.

Fuel costs in the quarter were double that of the comparable quarter the previous financial year.

Although the company is doing what it can to recover these costs through increased freight rates, fuel surcharges and energy efficiency measures the continuing adverse trend will mean the bottom line will be affected.

The first quarter result will also be adversely affected by some one-off costs associated with the restructuring programme announced at today’s meeting.

The company’s first quarter result will be released on 25 October.

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