Toll Group appoints Kruger as new MD
Australia-based Toll Group has confirmed that Brian Kruger is to become the company’s new managing director.
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Toll gains certification for EME region
Toll Global Forwarding has achieved certification under ISO 9001:2008 for the whole of its EME region spanning Switzerland, Germany, France, Netherlands, UK, Sweden and the UAE.
Read MoreToll underlying profits rise despite overall loss from Virgin sale
Toll Holdings announced a heavy full-year loss due to selling off its 63 pct stake in airline Virgin Blue but unveiled a strong rise in underlying profits.
In the year ending June 30, 2008, the group, which includes major express, parcel and courier businesses, made an overall net loss of AUD 695 million (EUR405 million). But this included a loss of AUD 952 million on discontinued operations, including a heavy AUD 1.2 billion writedown on the value of the Virgin Blue stake.
Toll announced in July that it would dispose of its holding in Virgin Blue by paying its shareholders a special dividend in the form of Virgin Blue shares. The group had previously said that the passenger airline was not a core business and that it wanted to focus on its global logistics activities while using the airline’s freight capacity under a long-term commercial agreement.
Net profits from continuing operations rose by 24pct to AUD258 million (EUR 150 million) on revenues up by 15.4pct to AUD5, 605 million (EUR 3,270 million). The operating profit (Ebit) was up by 18pct to AUD429 million (EUR 250 million). Toll managing director Paul Little commented: “We are pleased with the performance of our core operations, the integration of several new acquisitions and our balance sheet strength, which will all support our ongoing strategic development.”
In Australia, revenues grew to AUD4.42 billion thanks to 7.5pct organic growth and various acquisitions, including several express companies (Victorian Express, Couriers Australia and SkyNet). Operating profits were up 18pct at AUD347 million. The express operations, Toll noted, represent about 35pct of divisional revenue of AUD4.6 billion, or approximately AUD1.6 billion.
Toll IPEC, the road parcel express business, performed strongly during the year, benefiting from integrating services with group warehousing and distribution operations and utilising its comprehensive network to grow market share.
Looking ahead, Toll said that there is no deterioration in the Australian market yet, notwithstanding a number of challenging factors including increased interest rates, high fuel prices and currency volatility. In particular, it expected to benefit from more Australian companies looking to source directly from Asia.
Read MoreToll Group acquires New Zealand’s United Carriers
Toll Holdings signed a conditional purchase agreement for the business
of United Carriers a Northland trucking company with an annual turnover of
approximately NZD 50 million.
United Carriers employs 360 staff and has a fleet of 220 trucks. It has businesses
in a range of logistics sectors including general freight, livestock, logging,
warehousing and international freight forwarding.
“United is a very complimentary acquisition for Toll. It expands our existing
businesses in New Zealand into Northland where our presence was previously
limited,” said Toll Holdings Managing Director Mr Paul Little.
“While Toll now has a presence in 44 countries around the world, this acquisition
will further boost our presence in New Zealand. It also reaffirms our commitment
to the New Zealand market following Monday’s announcement of the sale of the
rail operating business to the New Zealand Government.
“The purchase will be funded from working capital and is another demonstration
of Toll’s capacity to acquire quality assets as opportunities present themselves.
“United Carriers will especially add significant value to Toll’s inter-modal road and
rail business,” Mr Little said.
The New Zealand Overseas Investment Commission has cleared the purchase
which is expected to be completed next month.
1 NZD = 0.756255 USD
Read MoreToll Returns Rail to New Zealand Crown
Toll Holdings announced the sale of its New Zealand rail and ferry operations to the New Zealand Crown.
Toll Managing Director, Mr Paul Little said, “The disposal of the rail and ferry operations to the New Zealand Government, will give rail in New Zealand the opportunity to move forward in an environment with greater clarity and ability to better plan its development. We are very proud of our achievements in managing the rail assets and believe that the Crown is acquiring a well run business with a highly motivated workforce”.
“I am also pleased that the Crown has acknowledged the role that Toll has played in
improving the efficiency of rail freight movements within New Zealand.
“The sale will result in Toll retaining Toll Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations. We support the Government’s objective of boosting capital spending on rail and our New Zealand freight businesses will continue to be major users of rail capacity.
“While we had not been looking to sell the rail operating business back to the Government, the sale has enabled us to re-focus our efforts on accelerating growth in our road and rail forwarding and logistics businesses, and this will include acquisition based growth.
“New Zealand remains a vital and attractive market for Toll both from a domestic and cross border viewpoint” said Mr Little.
The sale involves payment of NZD 665 million for equity plus a six year rent free period on existing premises with Toll retaining the Tranzlink business. It is expected that settlement will occur by 30 June 2008 with a management transition period. The estimated book value of assets disposed of is NZD 430 million.
1 NZD = 0.756255 USD
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