Toll in control as Patrick delivers 1H profits on target

<p>Toll Holdings yesterday (Wednesday, May 10) secured 50.86% of Patrick Corp shares, putting it in control of Patrick two days ahead of the close of the offer tomorrow night. </p> <p>Toll will extend its offer for another two weeks to get to 90% needed for compulsory acquisition and the integration of Patrick into Toll. </p> <p>Macquarie sources have reportedly denied rumours of a last minute raid on Patrick to block the way to 90%, in order to force a deal with Toll. </p> <p>In results for Patrick’s last half-year as an independent company to be released today, the company’s net profit after tax was $115m.</p> <p>Managing director Chris Corrigan who will present Patrick’s results for the last time later this morning, said that the first half profit to March was in line with the forecasts made in the target statement issued following Toll’s hostile bid last year.</p> <p>The results announcement was brought forward one day to be ahead of Toll’s assumption of control. </p> <p>Mr Corrigan said that the results were underpinned by "the strong performance of Patrick’s world-class ports business" and was a credit to the focus of the operational management.</p> <p>The poor performance of Pacific National reflected the dysfunctional nature of the Pacific National board and departure of the chief executive six months ago, Mr Corrigan said.</p> <p>Economic interest earnings before interest, tax and amortisation in the ports business was up 31% to $85.6m. </p> <p>Container volumes were lower than expected, but in line with trends at the major ports. However, they were still up 6.5% on the same period last year. </p> <p>The Autostrad operations at Brisbane are functioning as expected, with plans to introduce the technology into the Port Botany terminal. </p> <p>The Federal Government’s stevedoring levy is now expected to end in the second half of this year. </p> <p>Patrick’s rail division, which includes its Pacific National stake as well as forwarding, Autocare and the Bass Strait shipping, saw its economic interest ebita down by 14% to $61.8m. </p> <p>This was largely due to the Pacific National contribution, which was also down 14% to $38.8m in the period. </p> <p>Lower car import volumes were also a factor.</p> <p>Patrick said that Pacific National’s revenue was up just 3% mostly on its new Queensland intermodal operation. </p> <p>All major Pacific National operations saw margins decline, Patrick said, particularly intermodal which was hit by operational cost increases, as well as labour disputes, flooding and rail accidents. </p> <br />