Logistics and transport company K&S Corporation has posted an AU$16.4 million net profit, up 10.9% on the previous financial year.
The company’s New Zealand operation contributed a $383,000 profit, up significantly on the $4000 loss registered the previous financial year.
K&S says a strong return from its Western Australian operation helped offset slow trading conditions along the east coast of Australia.
The overall profit increase was built on the back of Regal Transport, which services WA mining regions, and a positive return from the DTM Business Logistics division.
Regal Transport posted a rise of more than $1 million to $4.6 million, while DTM lifted its result from $1.7 million in 2010-11 to $2.9 million in 2011-12.
While the Freighters and Bulk divisions accounted for $7.7 million of K&S Corporation’s result, the figure is down from $8.6 million the previous financial year. K&S Fuels also lost money, posting $752,000 compared with $868,000 the year before.
“In Australia, our east coast operations have experienced the effects of the high Australian dollar on the domestic manufacturers while on the west coast we have seen the positive impacts of the mining industry,” says Greg Stevenson, managing director of K&S.
Stevenson says the company still has a number of challenges in the east coast linehaul business due to the depressed volumes available.
“Looking ahead, earnings forecasts this half were “difficult” under a strong $A, but the WA business is set to experience strong growth in the year ahead,” he says.
