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

 

UPDATE: ERoad shares jump to year-high

UPDATE: ERoad shares jump to year-high as second quarter sales break record

(Recasts lede on share price, adds broker comment, updates shares in 3rd paragraph)

By Paul McBeth

Oct. 5 (BusinessDesk) - ERoad shares climbed to their highest level in more than a year after the company continued to gain traction in the US ahead of the December deadline for logistics firms to adopt and use electronic logging devices.

The Auckland-based company sold 2,313 units in the US in the three months ended Sept. 30, taking its total units in the US to 9,736. In its established Australian and New Zealand markets sales rose 11 percent to 49,802. The 7,086 units sold in the quarter was a new record for the company in both markets, and chief executive Steve Newman has previously said the 2018 financial year will likely post its biggest ever sales.

The shares climbed 17 percent to $2.65, adding to the 47 percent gain so far this year.

"They're on the road to recovery with that positive news," said Grant Williamson, a director at Hamilton Hindin Greene in Christchurch. "It's been pretty volatile over a number of years - they've had trouble and disappointment, but maybe investors think this is the turning point for the company."

North American sales lagged behind expectations in the 2017 year as US buyers put off buying decisions ahead of the new compliance regime as lobbyists tried unsuccessfully to delay the introduction.

With the opposition out of the way, ERoad has enjoyed record US sales in each of the first two quarters of the 2018 year, with sales growth tracking at a annualised rate of 119 percent. That compares to a rate of 37 percent in the existing Australasian markets.

"We expect that the traditional Christmas/New Year break in the ANZ market will lead to a slowdown in unit sales from the Q2 record levels," Newman said in a statement. "However, we expect the US market to continue to reflect the demand for ELD solutions for the market adoption deadline of 18 December 2017."

The company expects to surpass 50,000 units sold in Australia and New Zealand and 10,000 units in the US in the coming week, it said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:

Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>

ALSO:

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>