Mainfreight heading to better final result

By YOKE HAR LEE

An improved performance in Australia contributed to Mainfreight Ltd's 28 per cent higher third quarter net profit of $6.33 million.

Managing director Bruce Plested says the company is reasonably confident it will reach the lower-end of analysts' forecasts, which are for a full year's profit of between $9.3 and $9.5 million.

"The third quarter result reinforces our expectations that the full year result will be significantly ahead of the 1999 results."

Earnings per share for the latest December quarter were 8.74c, against 6.81c previously. In the last full year the transport and logistics group earned $6.88 million.

"It has been a strong year for us. We are up 25 per cent [earnings before interest and tax] - we are pretty hopeful this is going to carry on."

Mr Plested said market conditions were buoyant. "There is a good level of activity going on with all our manufacturers."

However, some of the company's margins have been under pressure, so its domestic forwarding business has posted a freight rate increase for all customers.

Mainfreight International, the New Zealand international freight forwarding business, continued to reduce the losses it experienced following the Asian crisis, registering a third quarter loss of $56,000 against a $299,000 loss previously.

The latest period also saw Mainfreight Australia return to profitability, helped by lower property rental costs.