Mainfreight, the biggest road transport company listed on the NZX 50 Index, posted a 15 per cent decline in first-quarter profit as ailing European economies offset strong growth in sales in the rest of the world.
Profit fell to $12.4 million, or 12.5 cents per share, in the three months ended June 30, from $14.6 million, or 14.4 cents per share, a year earlier, the Auckland-based company said in a statement. Sales advanced 3.4 per cent to $465 million.
"Financial performance improved in all regions other than in our European operations, where, as signalled, our first-quarter performance is impacted by trading conditions and customer losses post-acquisition (of Wim Bosman)," the company said.
"It is expected that the poor performance from our European operations will continue through the first half of our financial year until the European summer holiday season is behind us and new customer revenue is trading fully," it said.
Last year Mainfreight bought Dutch-based freight forwarder Wim Bosman to gain a foothold in Europe, which has under-performed to date, hit particularly by the loss of three customers. Two of those losses were expected, though the third was a surprise to the New Zealand transport firm.