Mainfreight is warning it’s investors that first half revenue will be less than expected due to falling ocean freight rates hitting its billing levels.
BusinessDesk reports that Mainfreight is estimating revenue will be between $1.15 billion and $1.17 billion in the six months to the end of September, compared to $1.11 billion in the same period a year earlier.
It produced this information in a presentation to analysts and investors at its Investor Day held at Mainfreight Epping, Victoria, Australia.
Mainfreight is reporting that earnings before interest, taxation, amortisation and depreciation are expected to be between $85-and-$87 million compared to $71.6 million in 2015, with a net profit of $41-to-$43 million compared to $33.1 million.
It says results from New Zealand had been stronger than expected, while results in Europe, Australia, and Asia had improved.
The United States operations had improved, but “not markedly.” says the transport and logistics operator.
The comparable period in the previous year was weak for Mainfreight, with its full-year results rescued by a focus on cost control and improved margins in the second half of the year.
In today’s trading update, Mainfreight says momentum continued into October, but the comparable period was “strong” and results from Asia would reduce due to a marked decline in non-repeat air freight volumes.
Mainfreight will be publishing it half-year results on November 9.
