Former TNT boss joins Freightways board
Roger Corcoran, who retired as chief executive of TNT Australia, New Zealand and the Pacific Islands in December, is joining the board of Freightways.
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Freightways Delivers Again With Record Full Year Result
Freightways Limited has been able to shrug off a challenging domestic market to achieve record revenues and earnings for the year ended 30 June 2008.
Managing Director Dean Bracewell reports that the successful execution of Freightways’ growth strategy in the Australian market, a sound result from its core express package division in a challenging local market and outstanding performance from the information management division, all combined to help the company continue its run of consecutive record annual results since listing on the NZX in September 2003.
Consolidated operating revenue for the year (to 30 June) of USD 324 million – topping USD 300 million for the first time – was 14pct up on the previous year, with earnings before interest, tax, depreciation and goodwill amortisation (EBITDA) of USD 68.5 million, 9pct ahead of the previous year. Earnings before interest, tax and goodwill amortisation (EBITA) of USD 60.5 million for the year were up 7pct on the previous year.
Cash generated from operations for the year before interest and tax was USD 67.5 million, 8pct higher than the previous year, while consolidated net profit after tax (NPAT) of USD 32.3 million was 5pct higher than the previous year.
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.
Freightways achieves record results
New Zealand express and freight transport group Freightways said it achieved record revenues and earnings for the year ending June 30, 2007, despite a challenging marketplace.
The company reported that consolidated operating revenue for the year rose to NZ$283 million (EUR 156 million), up 10% on the prior corresponding period, with earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$62.9 million (EUR 34.67 million), 8% ahead of the previous year.
Cash generated from operations for the year before interest and tax also reached a record NZ$62.3 million (EUR 34.34 million), while consolidated net profit after tax and before amortisation (NPATA) of NZ$30.9 million (EUR 17.03 million), was 6% higher than the prior corresponding period.
Managing Director Dean Bracewell said: “It was an eventful 12 months for Freightways in which it has performed soundly in New Zealand, established a firm presence in Australia and delivered another record result.”
The core express package brands of New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60, Security Express and Kiwi Express again contributed the majority of the group’s revenue and earnings. The internal linehaul providers, Fieldair Holdings and Parceline Express continued to provide a seamless and efficient air and road linehaul service, respectively, the company noted.
The express businesses continued to invest in areas that further enhance their competitive advantages and where additional capacity will be required to accommodate future growth, Freightways said. This included the relocation of all Freightways businesses operating in Hamilton into a purpose-built facility to service the growing Waikato and Bay of Plenty regions.
DX Mail, a nationwide business mail competitor to NZ Post, continued its growth, accelerated by the acquisition of the franchisor rights of the Pete’s Post mail delivery business in December 2006.
Looking forward, Bracewell said that Freightways’ performance in the short term “will continue to be influenced by the challenging New Zealand marketplace. Medium to longer term and subject to factors beyond our control, Freightways is exceptionally well positioned in all aspects of its business to continue to achieve positive outcomes for shareholders and other stakeholders.”
Read MoreCompetition for postal dollar delivered
Freightways says its purchase of the franchisor rights of small mail service Pete’s Post will expand the business from the main cities and ramp up competition against NZ Post.
Freightways’ postal service, DX Mail, said it bought the mail delivery businesses of Pete’s Post in Taranaki, Manawatu, Wanganui, Hawkes Bay and Bay of Plenty for NZD1.3 million.
Purchase of mail service expands alternative to NZ Post from cities into the regions
Freightways managing director Dean Bracewell said the purchase would allow the company’s DX Mail service to expand from the cities to the regional centres of New Zealand and increase competitive pressure on NZ Post.
Pete’s Post business complemented DX Mail which operated in all major towns and cities in New Zealand and had street-delivery services in Christchurch, Hamilton and Wellington, said Bracewell.
Freightways has forecast that the Pete’s Post arm would deliver operating earnings of about NZD500,000 over the next 12 months.
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