17 Aug 2010

Freightways profit falls to $23m

8:32 am on 17 August 2010

Freightways annual profit has been cut by a third, which the company says is due to the patchy economic recovery and one-off charges.

The courier and information management company made a profit of $23.2 million in the year to June, a decrease of 33% on the previous year.

Excluding a tax charge of $5.7 million and other one-off items, and extra trading days, its underlying profit fell by 2% to $28.9 million.

Revenue fell 3% to $328 million, and Freightway's managing director, Dean Bracewell, says sales have gradually recovered after being hard-hit by the recession in the first half of the year.

The company makes 78% of its earnings from its courier arm, and has agreements with Australia Post and Trade Me to establish sustainable income growth.

The company says the gradual improvement in the economy will result in single digit growth.

Freightways maintained its dividend payout at 7 cents a share.

The company's shares rose 7 cents to $2.75 at the close of trade on Monday.