Freightways faces $1.5m hit from earthquake

File photo

Freightways, the transport and logistics company, says operating earnings will be reduced by about $1.5 million as a result of disruptions from the Christchurch earthquake.

The company said operational costs are insured, but the coverage doesn't extend to lost earnings from its express packaging business. Some of the unit's freight volumes into and out of Christchurch won't be recovered, it said.

The express package and business mail unit had a 5 per cent increase in operating revenue to $140 million in the six months ended December 31.

That lifted earnings before interest, tax, depreciation and amortisation by 3 per cent to $26 million, according to the first-half report.

It operates under the brands of New Zealand Couriers, Poste Haste Couriers, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express and DX Mail.

Freightways boosted group profit 9 per cent to $15.8 million on faster second-quarter growth in the courier business, stoking the company's optimism about the rest of the year.

The shares fell 0.6 per cent to $3.15 in trading today.