Freightways
Half year results
Revenue- $177.3m up 10pc
After tax profit- $16.8m up 1pc
Dividend - 8cps
KEY POINTS:
Freight and logistics company Freightways says its latest profits shows the resilience of its business model, though the impact of the recession is hard to predict.
Revenue for the six months ended December 31 was up 10 per cent, earnings up three per cent and after tax profits up 1 per cent.
Freightways shares were up 2 cents in early trading on the NZX, up to $3.10 each.
The company is paying out an 8 cents per share interim dividend, after what it said was "a sound result from its express package and business mail division and an "outstanding result" from a growing information management division.
Tougher times and an uncertain outlook has prompted Freightways directors to "take a more conservative approach" when determining dividend payout, with this latest payout lower than last year's 9.5 cents.
"In looking forward it is difficult to determine the impact of the economic turmoil on Freightways' operating environment," said the company.
Due to this uncertainty, Freightways is planning to publish a trading update in April that it says will "provide high level financial results for the third quarter".
The company says it expects its express package and business mail division to continue to perform soundly, though fluctuations in the volumes of mail sent had made it difficult to accurately forecast 'near term performance. "
"Freightways will continue to be affected by the current economic downturn. In the medium to long-term, Freightways is exceptionally well positioned to reap the benefits of any improvement in the marketplace," it told investors.
-CHRIS DANIELS
