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

PROFIT BOOST FORECAST AT VILLA WORLD

VILLA World has forecast profit growth of 5 per cent in the first half of FY17 in an earnings guidance released to th...

WP CURVE SOLD TO GODADDY

NASDAQ-listed tech company GoDaddy has bought Gold Coast's WP Curve for an undisclosed sum.

The subscription-b...

BOARD SHAKE-UP TAKES OUT SURFSTITCH FOUNDER

ONLINE actionwear retailer SurfStitch Group (ASX: SRF) has announced a major board shake-up in a move that effectivel...

ORIGIN TO DIVEST UPSTREAM OIL AND GAS BUSINESS

ORIGIN Energy will spin off its upstream oil and gas business in an as-yet unpriced IPO.

It will allow the Sydney-...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter