Property sale help Freightways to enhance its profit

Post Haste

A 7% rise in full year profit has been reported by New Zealand's largest listed courier company Freightways.

It was Monday that a $34.6 million profit for the year ended June 30 was posted by the company - whose brands include New Zealand Couriers and Post Haste. The profit was up from $32.3 million last year.

A $3.9 million gain from the sale and lease back of a property in Wellington also contributed in the rise.

A rise by 3% was seen in earnings before interest, tax, depreciation and goodwill amortization (ebitda) to $70.5 million.

It should be noted that the core express package business helped generate the majority of Freightways' revenue and earnings. However, the performance for this year was down on last year. The economic downturn was seen as the major reason for the lower and fluctuating package volumes by the company.

But, on the other hand, Freightways also said that the economic downturn did not have any notable effect on the earnings of its information management services. The company also said results of this division have surpassed the same-time last year figures.

Last year, a dividend of 9.25 cents was declared by the company; while, this year, it was 8.5 cents.

Freightways, which wants to remain resilient in the weaker economy, did not issue a profit forecast.

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