Australia’s leading transport group Toll Holdings has announced record half-year profits andreiterated its aim of expanding in the Asia-Pacific region. The company, whose hostile bid for
ports operator Patrick Corporation has been blocked, has already confirmed that it is in talks tobuy a stake in Singapore-based SembCorp Logistics.Announcing its half-year results to December 31, 2005, Toll said that net profits rose 10.1% toA$115.3 million (€71.5 million). EBIT (excluding Pacific National) increased 23.2% to A$157.4million, and EBITDA also grew strongly by 18% to A$222 million. Group revenues rose 9.1% to A$2.1billion (excluding the 50% venture Pacific National), with Australia revenues up to A$1.78billion.
The Toll Networks division, incorporating its courier, parcel express, LTL and FTL truckingservices, increased revenues by 10.9% to A$774 million, upped EBIT by 28.8% to A$60.9 million andimproved its operating margin from 6.8% to 7.9%. Without releasing detailed figures, Toll said thatToll Express (LTL) and Toll IPEC (parcels express) reported “strong results” due to organic revenuegrowth and improved capacity and efficiency. Toll Priority (air express) and Toll Fast (courier)also performed strongly, with solid revenue growth and benefiting from restructuring and investmentin new technology.
Toll managing director Paul Little said: “The underlying strength in the core business is veryevident as is the continued momentum in the company. We have again delivered excellent organicgrowth at the revenue, EBIT and operating cashflow levels, as well as investing in capacity throughnew infrastructure, fleet and technology.”
Looking ahead, Little added: “Our organic growth and acquisition growth opportunities remainoutstanding platforms from which to continue to produce superior results for our shareholders, andour strategic direction is unchanged. Our strategy to aggressively grow the company’s capabilityand reach into the Asian region is in place and will position the company to produce sustainablelong term superior returns.”
In its half-year results statement, Toll commented: “Of immediate interest for Toll is thegrowing emphasis on the Asian region as the centre of international trade, and the direct impact onour domestic and multi-national customer base. These industry dynamics are consistent with thecompany’s long held strategic interest to extend its reach and develop the pre-eminent logisticsfootprint within the Asian sector. The company is currently considering a number of opportunitiesto develop its broader Asian network by acquisition and alliances.”
In the half-year to December 31, 2005, Toll expanded its Asian operations with new contracts inVietnam, Malaysia and Hong Kong, servicing both Australian customers’ offshore operations as wellas importing requirements. The Toll International unit is also building up Asian-based forwardingactivities, including in Thailand and China.
