Toll Holdings says outlook remains positive

SYDNEY - Transport group Toll Holdings Ltd says the group is trading in line with expectations and its outlook remains positive.

Toll also said its revenue and earnings since the end of the last financial year were ahead of plan.

Toll chief executive Paul Little told the company's annual general meeting today that since June the group had been focusing on integrating its acquisitions of stevedore Patrick Corp and Singaporean logistics provider SembLog.

Mr Little said Toll was refinancing its short term debt and was also reviewing the group's asset structure and capital expenditure.

"I am pleased to report that these efforts have enabled us to meet our plans and to deliver expected acquisition synergies up to this point," Mr Little told shareholders.

"Revenues and earnings in the period since June 2006 are ahead of plan and the outlook remains positive."

Toll chairman John Moule told shareholders that the integration of Patrick and SembLog was proceeding well and the group was trading in line with expectations.

Mr Little told shareholders that the process of selling a 50 per cent stake in rail operator Pacific National was on schedule and had generated a wide level of interest.

Toll gave an undertaking to the competition watchdog, the Australian Competition and Consumer Commission (ACCC), that it would sell half of Pacific National in order to gain approval from the ACCC for its takeover of Patrick Corp.

Toll and Patrick Corp had each owned 50 per cent of Pacific National.

Mr Little also told shareholders that Toll was continuing to review its equity investment in budget airline Virgin Blue Holdings Ltd.

"We should be in a position to brief the market further over the next few months," Mr Little said.

Toll became the majority stake owner in Virgin Blue when it took over Patrick Corp.

In August, Toll reported a record annual profit of A$231 million ($268.9 million) for 2005/06 as it completed the acquisitions of Patrick Corp and SembLog.

Toll acquired Patrick for A$6.2 billion in May this year.

It acquired SembLog for around A$1 billion in March.

- AAP