Mainfreight warns revenue levels 'less than expected'
Mainfreight estimates revenue will be between $1.15 billion and $1.17 billion in the six months to the end of September, compared to $1.11 billion in the same period a year earlier.
Transport and logistics group Mainfreight has warned investors first-half revenue will be less than expected due to falling ocean freight rates hitting billing levels.In slides published to the NZX as part of an investor day held at its Epping base in the Australian state of Victoria, Mainfreight estimates revenue will be between $1.15 billion and $1.17 billion in the six months to the end of September, compared to $1.11 billion in the same period a year earlier.
At the full-year results in May, managing director Don Braid told investors that the progress made in the second half of the last financial year “gives us confidence of continuing these improvements into the new financial year” but today’s update suggests this may have been stymied somewhat despite improved results. Earnings before interest, taxation, amortisation and depreciation are expected to be between $85-87 million compared with $71.6 million in 2015, with a net profit of $41-to-$43 million compared to $33.1 million.
Mainfreight said results from New Zealand had been stronger than expected while results in Europe, Australia, and Asia had improved. The US operations had improved but "not markedly."
The comparable period in the previous year was poor for Mainfreight, with its full-year results rescued by a focus on cost control and improved margins in the second half of the year.
In today's trading update, Mainfreight says momentum continued into October but the comparable period was "strong" and results from Asia would reduce due to a marked decline in non-repeat air freight volumes.
Its half-year results will be published on November 9.
Shares of Mainfreight rose 0.2%, or 3c, to $18.03. They're up 15% since the start of the year, outperforming the broader NZX50 which has increased 13%.
(BusinessDesk)
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Edwin Mitson
Wed, 12 Oct 2016
Wed, 12 Oct 2016
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Mainfreight warns revenue levels 'less than expected'
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