Freightways profits inroad

By Dita De Boni

Freightways Express Group is ascribing its $5.2 million net profit to June 30 to a "modest inroad" into the deregulated postal market in "difficult economic conditions." The company's profit, reported yesterday, is a 17.7 per cent increase from $4.4 million reported in the nine months to June 1998.

Earnings before tax rose 14.8 per cent from $8.2 million in the previous nine months to $9.4 million this year.

Freightways Express Group began trading in its current incarnation in September of 1997 by acquiring courier, document and records management businesses for $122 million.

In its first full year of business to June 30, 1999, sales rose 31.4 per cent from $118 million to $155 million, with courier services and document exchange comprising $140 million, and records management and contract distribution contributing $13.7 million.

Freightways has shed its computer bureau services business which resulted in a $200,000 reduction in revenue.

Finance director Steven Kerr said the company had been gearing up in the past 12 months to take on formidable rival New Zealand Post in the business mail sector of the newly deregulated postal industry, but had "yet to see the fruits of our labours."

Freightways Express Group is controlled by Australian company Ausdoc Group, which also reported its year end results yesterday, and also blamed its very small increase in net profits from $10.02 million last year to $10.13 million this year on a "challenging" economic climate.