Toll rides through challenging conditions

Toll Group, a leading provider of integrated logistics in the Asian region, has released interim results for the six months ended 31 December 2011, with a net profit after tax of A$158 million, down four per cent compared to the corresponding period, and sales revenue of A$4.4 billion, up five per cent.


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Toll Group, a leading provider of integrated logistics in the Asian region, has released interim results for the six months ended 31 December 2011, with a net profit after tax of A$158 million, down four per cent compared to the corresponding period, and sales revenue of A$4.4 billion, up five per cent.

Total operating profit (EBIT) was A$248 million, down two per cent. Net profit was down 3.7 per cent to 157.9 million. Brian Kruger, managing director of the Toll Group said: “These results highlight Toll’s robust underlying business model. Once again, Toll’s
diversity is proving to be its strength in these challenging economic times. Our exposure to the resources sector as well as the faster growing markets in Asia has helped offset the difficult conditions in discretionary retail and in the manufacturing sector in Australia.

“Toll Global Logistics saw growth in almost all businesses with the strongest performance from its Customised Solutions Services (formerly known as in2store and Toll Chemicals) reflecting increased volumes from both new and existing customers, while Automotive Logistics Services saw some improvement from both new Australian domestic models and increased import activities. The growth markets of China and India also showed gains as we continue to build our positions in those countries,” Kruger said.

“Toll Global Forwarding found the macro conditions particularly challenging given its current stage of development. Our current over-reliance on fashion apparel during what has been a very weak period for that sector can clearly be seen in this result. Moving towards a more balanced market sector exposure and achieving scale remains critical for achieving our return targets for this business,” he said.

Kruger said the company’s balance sheet remains strong with net debt to net debt plus equity at 29.7 per cent. “We continue to have sufficient balance sheet capacity for capital expenditure and targeted acquisitions,” he added.



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