Toll’s Rowsthorn says dividend unlikely in forseeable future

The directors of Toll New Zealand do not expect to pay shareholders a dividend in the foreseeable future, chairman Mark Rowsthorn said today.

Since reporting a $335.6 million loss in the June year, Toll NZ's performance in the 2004/05 year was in line with expectations, Mr Rowsthorn said at the firm's annual meeting today.

Looking ahead, he said, Toll NZ would continue with its restructuring activities in what were "solid" economic conditions.

The "economy has generally absorbed interest rate increases without signs of a major slowdown," Mr Rowsthorn said in a statement to the sharemarket.

Fuel prices were at near record prices but currently were not having a "material adverse impact".

If fuel prices remained at their current levels, growth in the Asian region could be impacted over time with the economy and Toll NZ's customers possibly being effected.

"The company has established a customer surcharging process aimed at minimising the cost impact of rising fuel prices," Mr Rowsthorn said.

"Recovery of these costs is vital for the company and the industry to support investment," he said.

"The directors do not expect the company to be in a position to pay any dividends in the foreseeable future."

At 2.50pm, Toll NZ shares were unchanged at $2.75 on Friday, having ranged between $1.36 and $2.80 in the past year.

- NZPA