Mainfreight posts huge spike in annual profit to $13.5 million

Transport operator Mainfreight Group today posted a March year net profit after tax of $13.5 million, up 126 per cent on the previous year's $5.9m surplus.

The result included Owens trading and purchase related costs, the firm said in statement to NZX today.

Mainfreight is soon to own all of Owens after amassing 91.58 per cent of its shares and sparking an automatic full takeover.

Owens today posted a net loss of $3.254m for the March year, which included restructuring costs after tax of $3.818m.

Meanwhile, Mainfreight's profit came on consolidated revenue of $857,043, up $197,169 on the year before.

Excluding foreign exchange movements and acquisition revenues, Mainfreight's sales rose 13.6 per cent in the 2004/05 year.

It said the bottom line was more than expected, and delivered through "better performance" across its various units.

It confirmed a final fully imputed dividend of 3.5c per share, payable on July 22, which took the total fully imputed dividend for 2004/05 to 6.5cps.

Highlights during the year included a substantial reduction in losses in Mainfreight's Australian domestic operations.

There were also large profit spikes from its Australia, United States, Asian and international operations.

The New Zealand domestic business continued to be both strong and profitable, Mainfreight said in the statement.

In New Zealand, domestic revenue rose 10.7 per cent to $201.1m, while earnings before interest and tax (ebit) was up 12.3 per cent at $22.9m.

New Zealand international revenues and ebit were respectively $66.1m and $1.9m, Mainfreight said.

Australian domestic revenues, excluding foreign exchange movements, rose 41.1 per cent, while ebit improved to a negative $315,000, from a negative $5.5m in 2003/04.

Australian international operations saw revenue rise to $199,017, and ebit gained 55.6 per cent to $7.161m.

USA International CaroTrans improved revenues by 29.8 per cent to US$51.9m ($73.59m). Ebit improved to US$1.2m.

Revenue from the Asian Associates unit rose to US$ 12.0m, which resulted in ebit of US$1.142m, up 21.6 per cent.

During the year, Mainfreight Group repaid $20.2m of borrowings.

Mainfreight said its 2004/05 performance would provide a sound platform for future growth.

The full takeover of Owens would likely be completed by early August, that firm delisting in mid-July.

"The consolidation of Owens Group into Mainfreight will enable greater operating synergies and cost reductions are likely with less administrative activity," Mainfreight said.

"Trading for April and May remains positive and is ahead of the same period last year," the firm said.

"We expect this to continue through the first quarter."

Ten days ago, Mainfreight confirmed it had bought Toll Holdings' 11.58 per cent in Owens for $1.17 a share.

That deal lifted Mainfreight's stake above the 90 per cent threshold that sparks a compulsory takeover.

Shortly after 10am, Mainfreight shares were up 6c at $2.50, while those in Owens were unchanged at $1.15.

- NZPA