Freightways has solid half

.

WELLINGTON - Freightways lifted its after-tax profit for the six months to the end of December by 52 per cent to $3.89 million, a result that managing director Dean Bracewell says augurs well for the rest of the year.

"The courier businesses in particular are expected to continue to perform well as the New Zealand and world economies embrace e-commerce.

"Freightways is in an excellent position to take advantage of changes in the supply chain that e-commerce brings, particularly in the business-to-business market."

Strong brand-names and market positioning, combined with large and efficient operations, would enable these new opportunities to be pursued with minimum impact on cost structures, said Mr Bracewell.

Expansion through acquisition would continue where appropriate and "a continuation of sound returns to shareholders is expected."

Operating revenue from the courier services and document exchange mail was up at $75.05 million ($73.37 million). Operating profit from this division rose 23 per cent to $11.01 million.

The record management and contract distribution divisions saw operating earnings slip to $410,000 on revenue up from $7.18 million to $7.52 million.

"Promotion and expansion of the DX Mail business is continuing as opportunities in the deregulated business mail market are pursued."

Group profit before interest, tax, depreciation and amortisation was 21 per cent higher at $11.99 million, on total revenue 2 per cent better at $83.17 million.
- NZPA