12 Jun 2010

Higher profit expected by port company

5:55 pm on 12 June 2010

Port of Tauranga has upgraded its profit expectations, due to improved cargo volumes.

The listed company expects to make between $49 - $50 million in the year to the end of June - up from the $45.2 million profit it made in the previous year. Analysts were predicting $47 million.

Chief executive Mark Cairns says cargo volumes are hard to accurately predict, but he's cautiously optimistic they can be retained at current rates.

He says all export markets are showing signs of pickup, but forestry has been particularly strong into China.

The company says changes to depreciation rates will result in a one-off non-cash adjustment to income tax of $11 million this year.

But that will be more than offset by the reduced company tax rate, which Port of Tauranga says will lower its tax bill by about $1.5 million per year.

Shares in Port of Tauranga rose 25 cents to $6.80 on Friday.