Port and rail operator Asciano is expecting earnings growth to slow this financial year due to a weakening economy.
Asciano's net profit rose by more than 40 per cent to $340 million in the year to June 30, on the back of stronger earnings from its Pacific National coal haulage operations.
That earnings growth was due to new Queensland contracts and growth in demand from existing Hunter Valley customers.
Pacific National Coal is expected to again drive earnings growth in the year ahead, with demand for coal expected to remain at current levels.
But chief executive John Mullen said weaker economic conditions in Australia were likely to affect Asciano's other businesses.
"Clearly, the resources boom's come off, the environment is much tougher now than it was six to 12 months ago," he said on Wednesday.
Overall earnings are expected to grow in 2013/14, but at a slower rate than the 12.5 per cent growth in 2012/13, he said.
Asciano's PN Rail business, which hauls goods other than coal, grew its earnings by two per cent in 2012/13, and volumes in the business are expected to be flat in 2013/14.
Asciano's terminal and logistics division, which handles containers at several Australian ports, suffered a 12 per cent drop in earnings in 2012/13.
Mr Mullen expects a sluggish domestic economy will also impact volume growth in this area.
Asciano will also incur costs of about $14 million from the redevelopment of Sydney's Port Botany in the 2013/13 financial year.
Asciano shares were up 19.5 cents, or 3.7 per cent, at $5.425 at 13416 AEST.
