Coal hauls Asciano back into the black

By Sineva Toevai

The after tax result for the six months ended December 31 was a significant turnaround on the $93m loss the group posted in the previous corresponding period.
The result was achieved despite a revenue fall of 4% to $1.43bn.
“We continued to see strong volume growth in coal haulage operations as we successfully commenced operations in Queensland to supplement continued growth in our New South Wales volumes,” Asciano managing director Mark Rowsthorn said.
“This volume growth offset continuing soft volumes in a number of our non-bulk operations.”
The company was last week rewarded with investment grades credit ratings by Standard & Poor’s (BBB-) and Moody’s (Baa3) for halving its gearing levels.
The emergence of positive trends in volumes handled by Asciano indicated that the worst of the global economic crunch was over, Rowsthorn said.
“While we may see some slowing of momentum in coming months following the inventory rebuilding that occurred during the December quarter, the medium-term outlook for our business is more positive today than it has been for the past 18 months,” he said.
As a result, Asciano now expected full-year earnings before interest, tax, depreciation and amortisation (ebitda) to be at the top end of its guidance range of $675m to $700m.
Asciano’s Pacific National Coal division posted a 47% surge in ebitda to $98m due to solid growth in the Hunter Valley and the early start of coal haulage operations in Queensland.
Pacific National Intermodal's ebitda rose 6.2% to $117m despite a 16% fall in revenue to $427m.
A fall in container lifts dampened the earnings of Patrick Container Ports to $109m from $118m last year with Fremantle and Melbourne proving to be the weakest links.
The Auto, Bulk & General Stevedoring unit delivered mixed results with motor vehicle transport and storage volumes recording falls for the half year while bulk rail volumes rose.
Overall ebitda for the division declined 12% to $56m and revenue fell 7%.
The Toll Group, which in 2007 shed the assets now bundled under Asciano, is due to announce its half-yearly results tomorrow.

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au