Trucking looks up in Australia

By DANIEL RIORDAN transport reporter

Trucking and logistics firm Mainfreight continues to recover from its disastrous foray into Australia, posting a net profit of $6.6 million for the 12 months to March 31, compared with $2.4 million for the same period a year earlier.

Revenue fell from $411 million to $401 million after the shedding of unprofitable operations in Australia - the market that has dragged down the company's performance since its entry there two years ago.

Managing director Don Braid said the company had done the last of its Australian trimming, and was focused on revenue growth.

He said his prediction three months ago that the operations across the Tasman would be making a bottom line profit by the December quarter still held.

On an ebitda basis (earnings before interest, tax, depreciation and amortisation), the Australian domestic operations lost $2.2 million compared with a loss of $5.5 million the year before. The company's Australian international division posted ebitda of $4.7 million, up 56 per cent.

The New Zealand international division had ebitda of $2.6 million, up 40 per cent, but ebitda for New Zealand domestic operations was down 2 per cent to $19.4 million.

This decline, said Braid, was explained by the warehousing operation's move away from reliance on a small number of customers.

He said New Zealand domestic conditions since balance date remained buoyant.

The market welcomed the result by sending the share price 6c higher to $1.34.