Freightways half year profits up 9pc

Freightway's managing director Dean Bracewell. Photo / Martin Sykes

Freightways is reporting a 9 per cent rise in half year net profit to $15.8 million, as volumes from many customers improved.

Revenue for the six months to the end of December was up 7 per cent from a year earlier to $176.2m, with the second quarter up 9 per cent and the first quarter up 4 per cent.

A dividend of 7.25c per share is to be paid, up from 7cps a year earlier.

In its core express package and business mail division, which contributes about 80 per cent of revenue and earnings, operating revenue was up 5 per cent from a year earlier to $140m, with the second quarter up 7 per cent and the first quarter up 3 per cent, Freightways said today.

See the company's investor presentation here.

"As the half year progressed, the improving performance of the express package and business mail division gained momentum, assisted by modest price increases, some market share gains and a return to increasing volumes from many existing customers."

The company said it was too early to suggest the second quarter growth was sustainable, so it was remaining cautious in its outlook.

"We are nevertheless encouraged by this half year result and are optimistic about a further gradually improving marketplace," Freightways said.

- NZPA