20 Aug 2009

Port of Tauranga weathers fiscal storm

10:16 pm on 20 August 2009

Port of Tauranga chief executive Mark Cairns is optimistic the company is in good shape to weather the remainder of the economic downturn.

The port has announced a 7% increase in net profit for the year to June, up more than $3 million to $45.2 million.

The better result came despite a 4% fall in revenue to $144 million and reduced volumes passing through its wharves.

Mr Cairns says cost-cutting, greater dairy and log exports, increased property income, lower interest rates and a lower corporate tax rate have contributed to another record year.

He says the economy appears to have found a floor and positive signs are emerging, despite uncertainties over the speed of any recovery.

Mr Cairns says he is confident of maintaining earnings at least at the same level, given the upturn in forestry and Port of Tauranga's strong balance sheet.

Directors have declared a fully imputed final dividend of 18 cents per share in addition to an interim payment of 9c a share.

Port Of Tauranga shares fell 5 cents to $6.50 on Thursday.