Flat result in line with forecasts

By DITA DE BONI

Transport group Owens reported slightly higher profits on slightly lower sales for the first six months of this year.

Group profit grew to $1.86 million from $1.84 million in last year's first half.

Revenue dipped 13 per cent from $190.8 million to $166.2 million.

The flat results - once again attributed by the company to a subdued domestic economy - were consistent with predictions at the previous year-end by chief excutive Ian Newman that New Zealand operations would underperform against Australia for the foreseeable future.

Australian group results had been buoyed by better economic conditions in that country and a strong performance by Owens International Freight, but adversely affected by restructuring and closure costs within Owens Containers Australia.

Mr Newman said New Zealand operations had improved as a result of restructuring, although further rationalisation of the underperforming Cooltainers division would be needed to ensure the business can compete in the marketplace.

Companies with a domestic focus like Hirepool and Owens Road Transport NZ had outperformed, he said.

Chairman Norman Geary said the Owens Group operating profit for the year ended March 2000 would be "appreciably" ahead of last year's $6.12m profit.

Owens Group shares closed down 1c at 133c.