Freightways says trading strong, gives positive outlook

Courier firm Freightways today said its first four months of trading in the 2004/05 financial year had been strong and that its outlook for the year was "very positive."

In the four months to October 31, Freightways net profit after tax was $6.5 million, against $4.6m in the same period last year.

Revenue totalled $74.8m (from $67.1m in the same period in 2003), while earnings before interest, tax and amortisation (ebita) was $15.5m ($11.7m).

Freightways said trading had been consistently strong in the October third.

"Volumes in all business are ahead of last year," it said in a statement to the sharemarket.

"These volume increases have arisen from higher activity from existing customers and increased market share," it said.

"There has also been some small pricing and margin improvement compared to the previous year."

The "small acquisition" of an information management firm in March this year had contributed positively to the bottom line.

Looking ahead, Freightways said it was operating in a favourable domestic economy and it was not aware of any material changes that might impact on its performance.

"At this stage of our annual business cycle, and subject to economic and business factors beyond our control, the outlook for Freightways, its shareholders and all other stakeholders remains very positive," it said.

In August, Freightways, which listed in September 2003, posted a June year net profit of $15.4m.

At 11am, Freightways shares were up 1c at $2.71, having ranged between $1.90 and $2.70.

- NZPA