TNT has record $285M net profit

Press, 6 September 1989, Page 41

TNT has record $285M net profit

NZPA-AAP Sydney TNT, Ltd, said strong performances by Australian and offshore freight operations helped lift its equity net profit by 7.2 per cent to a record sAust22l.ss million (SNZ2BSM) for the year ended June 30.

Total group revenue, including $3.91 billion in sales, rose 3 per cent to $4.138. But the company said heavy foreign exchange losses, written off as part of an extraordinary loss of $47.71M, dragged down the bottom line profit to J173.04M from the previous year’s $226.26M.

TNT also wrote down $114.91M for depreciation and amortisation of fixed assets, compared with $90.12M for 1987-88. The group said in a statement Europe has been targeted for future growth and it was continuing significant investment in its express freight business on the continent. It said its Australasian operations benefited from a buoyant economy, tight cost control and rationalisation programmes carried out in the previ-

ous financial year. TNT New Zealand operations, which have been restructured, were currently operating profitably.

Australian air and road express freight divisions performed well, TNT said. “Continued efforts to increase efficiency and reduce operating costs put TNT Australasia in a strong position to meet any downturn in the Australian economy.”. It said its investment in Poseidon, Ltd, had paid off with a substantial improvement in the gold miner’s market value following deals with Gold Mines of Kalgoorlie and Bond International Gold Inc. Ansett Transport Industries, owned jointly by TNT and News Corp, made a significant contribution. The company said Ansett’s result was tempered by the adverse effects of industrial action, a softening in passenger demand during the second half and its inability to raise fares to cover increased operating costs. Profitability of Ansett

and other Australian airlines in the current year would be hit by the pilots’ dispute, it said. TNT’s half-owned Union Shipping Group earned record profits following its earlier rationalisation. In North America, U.S. road operations performed above expectations, but TNT Canada recorded a disappointing result, the company said. Alltrans International freight transport and management information services group made an improved contribution to profit. TNT Brazil survived an inflation rate of 966 per cent to earn record profits and continue as the country’s leading domestic express freight operator, the company said.

It said European ventures absorbed heavy development costs for TNT Overnight Air Express Service and made a “positive contribution”. Increased overheads resulted in TNT Skypak posting an operating loss while TNT Mailfast continued to expand.