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Transport and information management company Freightways' half-year profit has slipped as it faces a slowdown in customer activity.
Key numbers for the six months ended December compared with a year ago:
- Net profit $40.9m vs $45.2m
- Revenue $620.7m vs $552.1m
- Interim/final dividend unchanged 18 cents a share
The company, which owns numerous brands including New Zealand Couriers, Post Haste and Big Chill Distribution, said the result reflected the general state of the New Zealand and Australian economies.
It said volumes in its express package division were up marginally on the same period a year ago, but gains in market share were offset by lower volumes from its regular customers - particularly in Big Chill.
Its top-line revenue growth was mainly driven by Allied Express in Australia, while underlying earnings were flat as it faced higher labour costs, rents for Big Chill and a slowdown of some customers.
Freightways said its information management and waste renewal division saw a slight improvement in profitability as price and cost-saving measures gained traction.
Looking ahead, the company said it remained "positive" about its business model and volumes - while stable - would be subject to the economic conditions of both Australia and New Zealand.
However, Freightways said labour market pressures have now peaked and had returned to normal.