KEY POINTS:
Mainfreight Group today reported a record $55.6 million March year net profit, up 91 per cent on a year earlier thanks largely to a $19.2m abnormal gain.
The net profit before abnormals was up 25 per cent to $36.4m. It posted a $10.6m profit in the last quarter against $10m a year earlier.
Managing director Don Braid said trading during the first two months of the year continued to see improvement by Mainfreight's offshore divisions.
"In New Zealand the environment remains challenging in what is traditionally a quarter of low activity for us.
"We remain confident about our growth potential in the near term."
A final, fully imputed dividend of 8 cents per share will be paid on July 20. That will take the full year payout to 15 cents per share plus a special dividend of 28 cents, compared to 12 cents last year.
"This is a very satisfactory performance, where all divisions in all countries contributed positively to the result," Mr Braid said.
"Our global interests have performed exceptionally well, particularly Australia and the United States.
"In both markets this performance will continue to strengthen as we develop market share across the supply chain."
Group sales increased 9 per cent to $968m.
Performance at home had improved despite tough conditions.
The divestment of four businesses had allowed Mainfreight to strengthen its balance sheet, pay higher dividends and position for further acquisitions, Mr Braid said.
Earnings from outside New Zealand now made up 54 per cent of the total.
In New Zealand, domestic freight volumes were markedly down and export volumes diminished on the back of the New Zealand currency appreciation.
Ebit (earnings before interest and tax) improved 5 per cent on static revenue growth.
In Australia, ebit improved 137 per cent to $9.9m on a revenue increase of 25 per cent. In both Australia and New Zealand airfreight operations were growing strongly.
Mainfreight's international divisions were affected by the lumpy performance of its projects division, Pan Orient, sold after balance date. However, ebit still improved 8 per cent to $13.9m on a revenue increase of 11 per cent to $309m.
Mainfreight International improved ebit 34 per cent to $6.1m on an 11 per cent in revenue to $140m.
In the US, ebit improved 50 per cent to $6m on revenue growth of 25 per cent to $111m.
Operating cash flows were at similar levels to last year at $47.9m.
During the year, net capital expenditure totalled $34.3m with property development accounting for $27.3m following the building of its new depot headquarters in Auckland.
In July, Mainfreight sold its 24.5 per cent stake in rental company Hirepool for between $27m and $28m, providing a gain of around $17m.
Mainfreight shares closed yesterday at $7.10. They have risen 26 per cent from a year ago when they were $5.65 but are down from a high of $8.15 in December.
- NZPA
