Mainfreight, the international logistics firm, has told shareholders earnings are a little behind a year ago and it is quitting its underperforming parcel freight in Australia.
Managing director Don Braid told shareholders at Wednesday's annual meeting in Auckland that earnings before interest, tax, depreciation and amortisation to the end of May were 2.5 per cent behind the same time a year earlier as "conditions remain difficult".
Australian trading has been deteriorating in recent months as Mainfreight quits the parcel freight business, which was eroding margins in the unit, Mr Braid said.
"In an effort to improve our facilities in Australia, we have committed major investment for new builds in Brisbane and Melbourne," he said.
"We expect the Brisbane facility to be ready mid-2014 and Melbourne a year later."
The New Zealand unit's earnings were tracking slightly ahead of last year, while the US was in line, and more improvement was needed in the American market as the year progressed, he said.
Mr Braid said the company was still on the hunt for acquisition opportunities offering scale and to aid Mainfreight's global aspirations, and while regularly approached with offers, pickings were slim.
European earnings were still disappointing, though Mainfreight was progressing with talks to reach a settlement with the former owners of Wim Bosman over the loss of a major customer.
The shares fell 2.5 per cent to $10.75 on Wednesday, and have slipped 5.8 per cent this year.
Share
