Business better than usual for Mainfreight
Mainfreight Ltd has issued a trading update to the NZX advising that year-to-date trading, including its results from January to early March 2020, remain ahead of the prior year.
“While we have seen a decline in air and sea freight to and from our Asian operations, trading across other international trade lanes, and domestically within New Zealand, Australia and Europe, continues at reasonable levels,” it states. “More recently, China volumes are re-emerging as factories and ports return to normal operations.
“The Americas, while ahead of the prior year in our domestic businesses, has had greater exposure in our air and ocean business to Asia down-trading.”
The logistics and transport company, which has its headquarters in Auckland, adds: “Although we are heading into a period of uncertainty, the world’s freight trade-lanes remain open. Our experience in China has given us some knowledge of how to operate in this new environment. All 275 of our branches worldwide are open.”
Earnings guidance suspended
Tourism Holdings Ltd (THL) has suspended its earnings guidance for its 2020 financial year in response to economic “uncertainties” resulting from the coronavirus pandemic.
The company had previously maintained its expectation for a full-year net profit of about $24 million in its half-year report published on February 28. This factored in a forecast reduction in Chinese tourists from February through to April 2020 due to the government’s containment measures.
However, THL has now abandoned that guidance since new travel restrictions were announced relating to the pandemic in this country, across the Tasman and in the US.
“Despite the challenges facing the industry, THL has a strong balance sheet with low debt levels, significant undrawn facilities and high-quality asset backing,” reports the company.
For the six months to December 31, EBIT for THL’s New Zealand rentals and sales rose by six per cent from the previous period to $7.5m. It saw growth in both rentals and vehicle sales. Rental revenue was up by five per cent to $40.5m with growth in hire days and yield. Vehicle sales revenue increased 14 per cent to $25.8m with growth in sales volumes as well as margins.
Auction houses remain open
Todd Hunter, chief executive officer of Turners Automotive Group, says all the company’s auctions in New Zealand are running as normal. “The number of people attending in person is quite low as everyone has the option of bidding and buying online,” he adds.
Manheim auctions in this country and Australia are still progressing as planned, but initial feedback is fewer people are physically going on-site and there is more online activity.
