Freightways sees September improvement

Transport company Freightways has seen activity pick up in September after two relatively quiet months.

The company told its annual shareholders' meeting today it increased revenues in the three months to September by 12 per cent to $70.1 million compared to a year ago.

Ebitda (earnings before interest tax and amortisation) for the three-month period were up 6 per cent compared to the corresponding period last year to $14 million. Net profit after tax rose 3 per cent to $6.3 million.

July and August were relatively quiet months in the express package businesses, but September improved and was encouraging, Freightways said.

The update of its trading activity demonstrated the resilience of its strategy in quieter times, the company said.

Top line growth was achieved as a result of sustained support from existing customers, higher than normal pricing gains geared to offset the still high cost of fuel, some market share gains and new revenue from the acquisition of Australian information management company DataBank.

That deal demonstrated the continuing importance of Freightways' strategy of exploring complementary growth opportunities for its core businesses, managing director Dean Bracewell said.

Freightways was well-placed to benefit from any sustained improvement in its marketplace, with all subsidiaries positioned to accommodate growth.

Also, it expected to see some moderation in the level of cost increases throughout the rest of the financial year.

Freightways operates a fleet of freighter aircraft, and a fleet of linehaul trucks for its express package operations. It has branches in major centres, employing about 1200 people and partnering with about 1000 independent contractors.

Its brands include New Zealand Couriers, Post Haste and Castle Parcels. Freightways also has brands in information management and business mail.

Mr Bracewell said the company had learned from its history that quiet times came and went and were no time to shut up shop.

"In fact the opposite is often the case as quieter times can deliver opportunities, some of which we have already been able to realise," he said.

Around noon Freightways shares were up 7c to $4, having ranged between $4.15 and $2.93 in the past year.

- NZPA