Australia’s largest transport and logistics group, Toll Holdings, has reported record full yearearnings of A$243 million following its acquisition of port operator Patrick Corporation and Asian
logistics group SembLog earlier this year.The group’s revenue increased by 30% to A$4,901 million in the year ending June 30, 2006.Operating profits rose to A$355 million from A$235 million while pre-tax profits were A$301 millioncompared to A$256 million. The net profit improved 17% to A$243 million. The figures include theconsolidation of the Patrick acquisition and rail operator Pacific National from 10 May 2006 andSembCorp Logistics from 20 March 2006.
Toll Managing Director Paul Little said the record result was a remarkable achievement in ayear when the group underwent significant change. “Toll has successfully completed two major,company changing acquisitions and at the same time grown our core businesses,” he said. “Thisachievement is a credit to the Toll team who have proven the strength of the company’s serviceoffering and customer relationships, which will continue as the Group moves forward as a globalscale logistics operation.”
The Networks division, which incorporates the Australian express business as well as freighttransportation, posted an outstanding result with revenues up 13% to $1.54 billion and an EBIT of$115.8 million (+37%). The EBIT margin improved from 6.18% to 7.53%.
All businesses performed strongly, with Toll IPEC, Toll Express and Toll Priority being thestandouts, the company said. Each of the businesses benefited from expanded terminal capacity, highorganic revenue growth and excellent cost control. A number of new facilities are presently underconstruction or planned and will provide for additional growth and higher efficiency levels.
During the year Toll Priority continued the upgrade to its facilities, with the opening of astate of the art freight handling terminal of 16,500 square metres in Melbourne. Upgradingproperties, together with investment in technology has supported strong revenue and earnings growthfor this business. Toll IPEC grew its revenue base with a number of new contracts, reflecting itshigh service levels.
Toll’s major Asian based logistics acquisition, SembCorp Logistics, performed in line withexpectations and contributed revenues of $111 million and after tax earnings of $8.2 million in theperiod from acquisition. The integration of the SembCorp Logistics operations – to be renamed TollAsia in October 06 – is well advanced and is attracting much attention from customers who areincreasingly seeking cross-border logistics solutions, Toll said.
Looking ahead, Toll Holdings said that the acquisition of SembCorp and Patrick havepositioned the group as a leading, global scale integrated transport and logistics provider with acrucial footprint into key Asian markets.
