Freightways Delivers With Record Result
New Zealand express group Freightways has announced record results for the half year ended 31 December 2007 despite tough economic conditions and said it expects good growth for the rest of the year.
Freightways reported a 2 pct rise in half-year net profit to NZD 16.8 million (EUR 9.1 million). Operating revenue increased 12 pct to NZD 162 million (EUR 88 million), with earnings before interest and tax (EBIT) of NZD 31 million (EUR 17 million) up by 6 pct over the same period.
The company said its core express package business performed well in the first half-year and it expects this trend to continue in the future although the state of the domestic economy will have some bearing on its performance. Its emerging businesses, including business mail and information management, are expected to continue their growth.
Managing Director Dean Bracewell commented that, despite rising costs and the challenging operating environment, “the half year result reflects another strong period for Freightways that has continued to deliver upon its strategy.”
The majority of Freightways’ revenue and earnings is contributed by the core express package brands of New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60, Security Express and Kiwi Express, where primary focus is to defend and grow the business.
The DX Mail business is seen as an emerging growth business, since its performance during the half year has been outstanding, while its contribution to Freightways’ earnings remains relatively small. Freightways also views the information management market as an emerging growth opportunity, as evidenced by the recent acquisitions it has completed in New Zealand and Australia, with all businesses experiencing strong growth.
