14 Feb 2012

Mainfreight shares fall despite record result

6:46 pm on 14 February 2012

Shares in transport group Mainfreight have fallen nearly 10% despite posting a record nine-month profit.

Mainfreight's profit to December was up by 35% to $46.75 million, despite a poorer than expected third quarter.

Total sales jumped more than 35% percent to $1.37 billion compared with the same time a year earlier, and earnings before interest, tax, depreciation and amortisation broke the $100 million mark for the first time, a jump of 50%.

Excluding the company's Netherlands-based Wim Bosman Group, revenues were up by nearly 4%.

The company's shares ended Tuesday down 95 cents at $9.40 and managing director Don Braid says the price dive was because investors were surprised by the third quarter when freight volumes and returns matched the levels of prior years, in comparison with the big rises in the other two quarters.

He told Evening Business on Checkpoint says the company lost a couple of large accounts in Europe in the period and while it had signed up new business in its place, that does not get underway until later this year.

Mr Braid says Mainfreight is quite comfortable with its current level of trading, even thought it is not as aggressively ahead of year prior as it was in first six months.