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Source: ONE News -
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Net surplus for transport and logistics group Mainfreight has halved in the June quarter, down 51.1% to $4.02 million, not including one-off costs.
The group reported net one-off restructuring costs of $1.27 million as the group moved to improve operational performance.
Earnings before interest, tax, depreciation and amortisation were $11.72 million, down 29.2% on the same period last year.
The company says trading conditions across its Australasian and American locations were difficult.
However, the group says its New Zealand international division performed well due to cost reductions and improved market share in the air freight sector.
The group also says its Australian domestic and international operations performed better as a result of improvements made in its logistics business and revenues from the acquisition of freight forwarder Halford International.
Mainfreight says the fall in profit was expected and reflects a decline in freight volumes.
"During this time we have taken the opportunity to respond with better margin management, cost reductions and strong sales strategies - all measures that will stand us in good stead for the future," the groups says.
Mainfreight in July told shareholders it was responding to the challenges of the economic downturn by renegotiating its bank facilities, a freeze on hiring, deferring salary reviews, and reducing capital expenditure and other costs.
The group says its July and August trading has improved and believes this improvement will continue into the third and fourth quarters.
