AURIZON DEALT WITH $30M BLOW

Written on the 3 March 2015

AURIZON DEALT WITH $30M BLOW

AURIZON Holdings Limited (ASX:AZJ) has signalled a potential $30 million blow to its earnings following Cyclone Marcia and industrial action across the state.

The rail freight operator has estimated the total financial impact of Cyclone Marcia on Earnings Before Tax and Interest (EBIT) to be between $24 million and $28 million.

The Category 5 cyclone hit north of Rockhampton on February 20 and tracked south over the Blackwater and Moura rail systems.

Aurizon's network business was the hardest hit with between $14 million and $16 million in losses, including reduced revenue and damage repairs to infrastructure.

Services on the Blackwater coal system has resumed, with repairs on the Moura corridor anticipated to be completed by the end of March.

The EBIT impact on its above-rail and coal business is between $10 million and $12 million, with the company offering additional services to recoup lost volumes for customers.

Meanwhile the estimated EBIT impact of the industrial campaign from Queensland rail unions is up to $2 million.

It follows train-crew strikes across the state last month, organised by the Rail, Tram & Bus Union and Australian Federal Union of Locomotive Employees.

Both unions will continue to negotiate two outstanding Enterprise Agreements, however there are no further plans for industrial action at this point according to Aurizon.


Latest News

REBRANDING AND RESTRUCTURING LIFTS HELLOWORLD TO SOLID FY RESULTS

HELLOWORLD Travel Limited (ASX: HLO) has posted a profit before tax of $31 million for FY17, an 800 per cent incre...

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

CORPORATE TRAVEL MANAGEMENT NOTCHES UP 23 YEARS OF CONSECUTIVE GROWTH

CORPORATE Travel Management (ASX: CTD) has reported its strongest ever full-year results, with a net profit increa...

REPORTING SEASON WRAP: TUESDAY HIGHLIGHTS

* BHP Billiton (ASX: BHP) reported full year net profit of $7.42 billion compared to a $8 billion loss in the previou...

Related News

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

REPORTING SEASON WRAP: MONDAY HIGHLIGHTS

* FORTESCUE Metals (ASX: FMG) reported net profit after tax (NPAT) of $2.64 billion for the year to June 30, up fr...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter