Restructure, growth nets Toll a $408m earnings result

<p>Toll Holdings posted a record full year earnings result of $408m for the year to June 2007 yesterday (Wednesday, August 22), on the back of revenues totalling $9.95bn. </p> <p>The result comprised earnings from non-continuing operations for the period to June 15, 2007 &#8211 before the transfer of businesses to Asciano.</p> <p>Earnings before interest and tax (EBIT) for continuing businesses was $734m, and revenue grew from $4.4bn to $7.5bn.</p> <p>The result reflected 9% organic growth rate in the Australian business, and the inclusion of Patrick Logistics, SembCorp Logistics and Virgin Blue revenues for the full year, Toll Group managing director Paul Little said.</p> <p>"The prospects for further superior shareholder value creation is very strong,&#8221 Mr Little said.</p> <p>Operating conditions throughout Australia remained positive during the year, with the growth in activity in the resources sector continuing at high levels. </p> <p>Core Australian operations produced revenues of $4.2bn.</p> <p>Activity within Asia also continued strongly, although relatively flat conditions were experienced in New Zealand, Mr Little said.</p> <p>In New Zealand, operations remained constrained by flat economic conditions and the impact of high exchange rates on export demand, he said.</p> <p>Revenue in New Zealand grew 6% to $664m, whilst EBIT dropped $10m to $51m.</p> <p>Toll was expecting improved growth after it completed the full takeover of the remaining 15% stake in Toll NZ, due to be completed in the next few months.</p> <p>Mr Little said Toll chairman John Moule would stand down from the company, effective September 14, after Mr Moule and his family declined to sell their investments in Asciano Group.</p> <p>The former managing director and chief executive of the Smorgon Steel Group, Ray Horsburgh, will replace Mr Moule as chairman of the board.</p> <p>Mr Horsburgh is also the chairman of the Essendon Football Club.</p> <br />