The Full Year 2011 Freightways Ltd [FRE.NZX] Profit out this morning is a case of steady as she goes, with a few points to elaborate on along the way.
The 2011 full year net profit of $29,899 million is up by 29% on the 2010 result.
Revenue was up by 7% to NZ $352,520 million, indicating a good overall improvement in the company.
A dividend of 7.25c is to be paid compared with last years 7c.
The company seems to have finally hit its straps after having a few static and down years with the core express package & business mail division returning double digit earnings growth in the second and fourth quarters and its information management systems businesses looking promising after years of capital investment for growth.
Freightways expects growth from current customers for the 2012 year from their courier division and a payback from its information management systems investment as they gain scale and reputation in that sector.
Overall, the full year 2011 result has been a good indicator of a transition from static growth to a promise of more in 2012, after a rather unpleasant 2010.
Freightway's management are cautiously optimistic about company prospects for the coming year and this outlook has changed from the zero revenue growth and lower profits of the last few years in terms of the forward outlook.
This must of course tempered by the fact that the economy as a whole is shaky and any slowdown of significance will be felt by companies like Freightways first.
2012 could well go either way for the company.
9 out of 10.
Disc I own FRE shares in the Share Investor Portfolio
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