Freightways earnings fall, but profits up in Sept quarter

Freightways managing director Dean Bracewell. Photo / Martin Sykes.

NZX-listed delivery and transport company Freightways made $7 million profit for the September quarter, despite a fall in revenue of 5 per cent.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) fell 5 per cent to $15.1m from last quarter's $15.94m .

Freightways' total revenue was $81.76m, also down 5 per cent from the previous quarter's $86m.

However, the company's net profit after tax increased 2 per cent to $7m from $6.84m last quarter - demonstrating the resilience of the company's business model and an improved operating environment, managing director Dean Bracewell said.

"While it appears that an economic recovery is under way, the recovery in our view remains fragile and as a consequence volatility is ever present," he said.

The company was expecting strong cashflows through the year and was "well positioned to benefit from an improving Australasian economy," he said.

The company's shares on the New Zealand Stock Exchange fell 8 cents in morning trading to $3.07.

- NZPA