Mainfreight posts healthy profit

Mainfreight Group today reported its June quarter net profit was 49 per cent ahead of last year at $6.33 million.

Included in the result was an after tax abnormal gain of $800,000, primarily a refund of prior years' accident insurance in Australia.

Excluding that, the result was a 30.7 per cent improvement on the 2005 quarter.

Revenue increased to $233.73m from $213.41m. Excluding foreign exchange, the gain was 3.1 per cent.

The sale of Mainfreight's stake in Hirepool on July 31 for $27-28m will yield a profit of $17m. Some $14m has been received and the remaining payments will be made in November and May 2007.

The company said the first quarter result reflected continued improved offshore performance and a steady contribution from New Zealand operations despite the marked effect of Easter coming in April.

New Zealand domestic performance in May and June improved on the prior year. Revenue and ebit (earnings before interest and tax) over the quarter was steady.

The New Zealand international division's ebit excluding abnormals improved slightly to $500,000 with revenues improving 4.7 per cent. An abnormal cost $197,000 from merger of Mainfreight International, Coolair and Owens International affected the unit's result but benefits from the merger will be seen during the year, the company said.

Australian domestic ebit excluding abnormals improved to $1.26m from a small deficit last year.

Australian trading had continued to improve past the quarter's end and Mainfreight has expectations of a strong contribution for the full year.

Australian International ebit declined to $1.73m from $1.93m the previous year and revenue fell 3.9 per cent due to the fluctuating performance of its projects division, Pan Orient.

USA International ebit improved to $1.47m from $540,000. Revenues improved (excluding foreign exchange) 17.3 per cent to $29m.

Group capital expenditure in the quarter was $13.43m, mainly spent on property development.

Mainfreight shares last traded at $5.77. They have risen from $3.00 a year ago.

- NZPA