Mainfreight posts improved first quarter profit

Freight and logistics company Mainfreight today posted a June quarter net profit of $4.2 million.

The result is a dramatic improvement on the same quarter a year ago, when acquisition and restructuring costs relating to its takeover of fellow transport group Owens led to a $212,000 loss.

Mainfreight snared full control of Owens in May after Toll Holdings sold its 11.6 per cent blocking stake. It had sought a 100 per cent stake in Owens back in October 2003, when it gained its 79.7 per cent holding, but was blocked by Toll.

Mainfreight said first quarter revenue fell slightly to $213 million from $222 million as a result of divested business revenues of $22 million.

The firm's domestic operations were on solid footing, with earnings before interest and tax (ebit) rising 43.6 per cent to $4.59 million, due largely to improvements in the Owens Transport division.

Its New Zealand International division, including Owens Coolair and Mainfreight International, reported ebit of $489,000.

Ebit in its Australian division improved to breakeven levels from a deficit in the same year ago period of $1.4 million.

"We continue to see positive results from our Australian domestic operations as the second quarter progresses and expect our target of profitability for the full year to be achieved," Mainfreight said.

Australian International ebit more than doubled to $1.9 million, while USA International ebit was $537,000, up from $101,000 a year earlier.

Shares in Mainfreight last traded yesterday at $3.10. The shares have ranged between $1.87 and $3.20 in the past year.

- NZPA