Mike King, Special Correspondent | Aug 27, 2012 10:18AM EDT
Toll Holdings saw write-downs on assets in Australia and Japan contribute to a 76 percent decline in full-year profit.
The Australia-based forwarding and logistics group saw net profit tumble in the year ended June 30 to A$70.9 million (US$83 million), down from $294.8 million a year earlier.
Impairments related to toll’s Australian property portfolio and Toll Express Japan, which is branded Footwork Express, pulled back profit by $203 million. Toll said Footwork Express, which specializes in LTL freight services, had been affected in the year by the consumer and industrial slowdown in Japan following the earthquake and tsunami of March 2011.
Toll Group Managing Director Brian Kruger said the company’s overall performance was positive given the tough market conditions. Toll Global Resources, which services mining and energy sectors, had seen strong revenue and new contract wins, while Toll Global Logistics retained key customers and achieved new contracts.
“The Toll Global Forwarding division continued to face challenging markets, but has made good progress on internal productivity initiatives,” he said.
“While we don’t expect any short-term improvement in external conditions, recent new contract wins combined with our ongoing investment in fleet, property and IT will help us support future earnings growth,” Kruger said. “Toll is well-positioned to continue sustainable, disciplined growth in the years to come.”
Contact Mike King at michael@borderline.eu.com.