AURIZON POSTS LOSS AMID SUBDUED MARKET CONDITIONS

Written on the 18 August 2014

AURIZON POSTS LOSS AMID SUBDUED MARKET CONDITIONS

AURIZON Holdings Limited (ASX: AZJ) has reported a 43 per cent fall in full year profit to $253 million, following a haul of asset impairments.

The freight operator previously announced transformation-related impairments of $190 million, asset costs of $127 million and a $69 million voluntary redundancy package.

Statutory earnings before interest and tax (EBIT) was down 32 per cent at $465 million, in comparison to the same period in 2013.

Underlying EBIT increased 13 per cent due to record coal and ore tonnages, as well as stronger volumes from the Goonyella to Abbot Point Expansion.

CEO and managing director Lance Hockridge (pictured) says it’s a solid result in the face of subdued market conditions.

“Across all metrics our operating performance is improving and we continue to pursue significant operational reforms to make the company leaner, more efficient and more profitable,” Hockridge says.

“Collectively these results illustrate the success of the company’s cost outs and efficiency improvements, with the ongoing roll out of our Integrated Operating Plan providing strong discipline for our continuing reform work.”

Hockridge says the company is quietly confident in the future of Australian resources, backed by a number of expansion plans in the industry. 

This includes a $1.4 billion joint acquisition of Aquila Resources to develop rail and port infrastructure in West Pilbara, partnership with GVK-Hancock to deliver a transport solution for the Galilee Basin and 33 per cent stake in the Sydney Intermodal Terminal Alliance consortium.

“We are making large steps towards world-class performance and I’m confident our success will continue in the current year and beyond,” Hockridge says.

AZJ remains on track to deliver its 75 per cent operating ratio target in FY15, with anticipated cost reductions up to $300 million this year.

An unfranked dividend of 8.5 cents per share will be paid on September 22.


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

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