27 May 2010

Financial Results for Twelve Months to March 2010

Mainfreight Result for Twelve Months to March 2010

Commentary

The Mainfreight Group is pleased to report a net surplus after taxation and abnormals of $36.37 million for the twelve months of the 2010 financial year; an increase of 2.5% on the previous year’s result of $35.48 million. Total revenue (sales) decreased by 10.5% to $1.13 billion, from $1.26 billion last year (excluding foreign exchange, this represents a decrease of 10.3%). EBITDA declined 6.7% to $75.85 million.

Included in these results is a $3.04 million ($2.09 after tax) discretionary bonus for our teams throughout the world, wherever branch performance bettered that of the previous year. A total of 55 branches and 1,104 team members will participate.
The previous year’s discretionary bonus was forgone by all our people as a measure to address the deteriorating economic conditions. Team bonuses, while discretionary, are an integral part of Mainfreight culture.

Abnormals totalled $1.89 million; $800k related to leases surplus to requirements and the balance predominantly to restructuring costs incurred in our Mainfreight USA operations. Abnormal costs for the previous year totalled $4.5 million.

These past 12 months have been an exciting and challenging time for us. With economies around the world faltering, freight volumes deteriorated in most of our business units.

Our response to this decline was to manage our cost structures better, improve margins, aggressively expand our market share by increasing our sales activities and, importantly, continue to improve our quality and levels of service.
As the year progressed, these initiatives saw our performance strengthen quarter on quarter.

Despite the economic difficulties of the past year we have continued to open new branches in China, New Zealand and Australia and continue to identify new areas where we can extend our services around the world.

We are satisfied with this result and in particular the momentum we have as we progress into the 2011 financial year.

 

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