Mainfreight net surplus slides 50pc

Mainfreight says trading conditions during the first three months of the financial year have been tough in all countries of operation. Photo / Sarah Ivey

Mainfreight reported a first quarter net surplus after tax down 51.1 per cent from a year earlier to $4 million, amid difficult trading conditions in all countries it operated in.

Abnormal costs, after tax, of $1.27 million were incurred during the three months to the end of June related to restructuring, the company said.

Mainfreight also said trading in July and August had shown some improvement, and it expected that to continue into the third and fourth quarters.

Consolidated sales revenues for the quarter fell 9.5 per cent to $261.7 million. When foreign exchange adjustments were excluded, the decrease was 17.2 per cent.

Earnings before interest, tax, depreciation and amortisation (ebitda) were down 29.2 per cent in the quarter to $11.7 million, or down 31.9 per cent excluding foreign exchange.

"Trading conditions in all countries during the first three months of the financial year were difficult," Mainfreight said.

The New Zealand international, Australia international and Australia domestic operations all performed better than the same period last year.

Shares closed up 11c yesterday at $4.90.

- NZPA