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Freightways Reports 15pc Drop In Profits

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Feb 15 NZPA - Package and mail delivery company Freightways announced a 15 percent drop in profits for the six months to December 31 compared to the same period in 2008.

"While below the prior comparative period, it again demonstrates the resilience of the company. Accordingly, the directors have been able to declare a fully imputed 7 cents per share dividend," chairman Wayne Boyd said.

The company made a profit before interest and tax of $26,860,000, compared to the previous half's $31,492,000.

The company operates New Zealand Couriers, Post Haste Couriers, Castle Parcels, NOW Couriers, SUB60, Security Express and Kiwi Express delivery brands.

Freightways reported an operating revenue of $164,919,000, a 7 percent fall in the previous half's $177,392,000.

The reported net profit attributable to shareholders was 14 percent down on the half before, at $14,457,000 from $16,892,000.

"While volumes remain lower than the previous year in some of our businesses, encouragingly this is not the case across the entire division," Mr Boyd said.

The company anticipated a gradual recovery of the company's package business, keeping pace with the recovery of the wider economy, he said.

Though positive signs emerged in some areas of the group, it had not yet experienced "sustained, across-the-board improvement", he said.

Climbing steadily since a last November to a year high of 346 cents in January, shares in the company had since been falling in price, today dropping 3.43 percent to 310 cents.

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