T.N.T. PROFIT RISES 20.3 p.c.

Press, Volume CXVI, Issue 34104, 17 March 1976, Page 25

T.N.T. PROFIT RISES 20.3 p.c.

(V Z. Press Assn —Copyright! u - SYDNEY. 'I Thomas Nation vide Trans-|i port, Ltd, international I i transport group, is heading'< for another healthy profit l nse in 1975-76. after group; l net trading profit rose 20.3 ■ • per cent to Aust6.7m in j. the six months to December; 31. I The improvement reflects |, a substantial from North American activities, and the elimination of; losses in Europe. A reduction in interest rates was also a major reason for the advance. The north American division was now getting big profits. Revenue was running at SUS 180.0 m a year, said the deputy-chairman of T.N.T. (Sir Peter Abeles). The group was the largest transport company in Canada after the railways, and in the U.S. T.N.T. worked 61 terminals in 48 states. In Australia trading continued to be extremely difficult, with the volume of! freight showing a significant decrease over the previous corresponding period. The profit contribution fell. But. the result was pleasing considering the economic

I conditions in Australia, and 'local activities had now :reached the point where an i increase in profits could lonly arise from an improvement in turnover, Sir Peter said.

■ Costs, which had risen at I a tremendous rate during th six months, could no; longer be passed on to cus-; tomers through higher; prices. Trading was far from buoyant in all of the group’s markets, although there were indications that some improvement could be expected in 1976, Sir Peter said. The group net profit for 1974 has been adjusted upwards by $560,000 to reflect the retrospective reduction in company tax, and the adoption of tax effect accounting at June 30. The profit for the latest half-year was after a 21.6 per cent fall in interest charges to 52.6 m, and an 8.3 per cent fall in tax to $-1.5m. Depreciation and amortisation was almost steady at s3.lm. A steady interim dividend of 8 p.r cent has already been announced.