Leading New Zealand express parcels group Freightways has predicted record profits for the yearending June 30, 2013, and a further improvement in the new fiscal year.
The company said in a trading update that it expects to announce record operating profits beforeinterest, tax and amortisation (EBITA) of approximately NZ$65 million, an increase of approximately5% on last year. The net profit is expected to rise about 6% to $38 million. Full results will beannounced on August 12.
In the July-December first half-year the group’s operating revenue rose by 8% to NZ$207 million(€131 million), operating profit excluding non-recurring items went up 9% to NZ$40 million (€25.3million) and net profit was 11% higher at NZ$21 million (€13 million).
Freightways said its expected 2013 full year result “again delivers sound improvement above theprior year”, adding that 2014 “is expected to also demonstrate similar overall improvement” basedon its current forecasting.
In 2013-14, the listed company currently expects EBITA to rise about 5% again and net profit toimprove by a similar 6% figure. “This expected performance is consistent with Freightways’ mostrecent outlook comments that it expects to be operating in a positive but slow growth environmentfor the foreseeable future,” the company stated.
Freightways noted that the consensus of external analysts for 2014 results forecasts a 7% EBITAand 10% net result above Freightways’ expected 2014 results. The company expects analysts willreview their 2014 forecasts to more closely reflect its current operating performance.
