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

 

Mainfreight first-half profit surges 52%

Mainfreight first-half profit surges 52% on better growth in U.S., Asia

Nov. 18 (BusinessDesk) – Mainfreight Ltd., the trucking company whose shares have jumped by a third this year, reported a surge in first-half earnings as it managed to squeeze more profit from a moribund U.S. economy and lifted returns in Asia.

Profit excluding one-time items rose 52% to $16.5 million in the six months ended Sept. 30, from $10.9 million a year earlier, the Auckland-based company said in a statement. Sales rose 20% to $645 million, or a gain of about 25% excluding foreign exchange movements. Offshore sales now account for 70% of Mainfreight’s revenue, generating 50% of earnings before interest, tax, depreciation and amortization.

In the U.S., sales climbed 28% and EBITDA surged 127% to $6.73million, reflecting better third-quarter trading for both domestic and international freight. The U.S. results were encouraging though still below expectations, managing director Don Braid said.

“Irrespective of media commentary, general trading conditions for our operations throughout the U.S. continues to improve,” Braid said. Trading in October and November continued to show the improvement seen in the first half and margin management “remains a key focus for our teams throughout the U.S.”

Mainfreight shares fell 2% to $7.25, paring their advance this year to about 33%. The shares are rated ‘outperform’ based on the consensus of six analyst recommendations compiled by Reuters.

The company will pay a first-half dividend of 9 cents a share on Dec. 17, up 0.5 cent from a year earlier.

Business performance improved in most divisions, Braid said.

New Zealand domestic revenues increased 6.6% to $137 million, while its NZ international division’s sales rose 19% to $57 million. International shipping and airfreight rates have increased, reflecting capacity shortages across international trade lanes he said.

Australian domestic sales revenue lifted 26% to $104 million, and Australian international sales rose 26% to $116 million.

Asia international sales revenue improved 59% to $19 million as the company celebrated the 10th anniversary of its Shanghai branch.

Capital expenditure in the six months was $5.6 million, of which $1.35 million was property related.

“Property development expenditure is expected to increase during the next six months as building projects gather momentum,” Braid said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: