New Zealand express group Freightways has announced record results for the half year ended 31December 2007 despite tough economic conditions and said it expects good growth for the rest of the
year.Freightways reported a 2% rise in half-year net profit to NZ$16.8 million (EUR 9.1 million).Operating revenue increased 12% to NZ$162 million (EUR 88 million), with earnings before interestand tax (EBIT) of NZ$31 million (EUR 17 million) up by 6% over the same period.
The company said its core express package business performed well in the first half-year andit expects this trend to continue in the future although the state of the domestic economy willhave some bearing on its performance. Its emerging businesses, including business mail andinformation management, are expected to continue their growth.
Managing Director Dean Bracewell commented that, despite rising costs and the challengingoperating environment, “the half year result reflects another strong period for Freightways thathas continued to deliver upon its strategy.”
The majority of Freightways’ revenue and earnings is contributed by the core express packagebrands of New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60, Security Express andKiwi Express, where primary focus is to defend and grow the business.
The DX Mail business is seen as an emerging growth business, since its performance during thehalf year has been outstanding, while its contribution to Freightways’ earnings remains relativelysmall. Freightways also views the information management market as an emerging growth opportunity,as evidenced by the recent acquisitions it has completed in New Zealand and Australia, with allbusinesses experiencing strong growth.
