<p>Toll NZ has recorded an after tax loss of NZ$335.6m for the year to June 2004.</p> <p>The loss, which compares with the previous year loss of NZ$2.6m, is largely due to "unusual items" of NZ$344.8m, including the return of the rail network to the New Zealand Government, and "a detailed review of certain asset valuations" and the resultant tax implications, Toll NZ stated.</p> <p>Toll NZ chairman Mark Rowsthorn said the company would not be paying a dividend this year.</p> <p>"The directors do not expect the company to be in a position to pay dividends in the foreseeable future," Mr Rowsthorn said.</p> <p>Underlying trade was "generally in line with plan", although severe flooding in the North Island during February 2004 had a significant impact on trade.</p> <p>The company had pre-tax operating earnings of NZ$35.7m (down from NZ$40m the previous year) and operating revenue of NZ$631.1m (an increase 3.5% on 2002቟).</p> <p>Mr Rowsthorn said that since Toll Holdings had taken over the company – formerly Tranz Rail Holdings – in October 2003 it had begun restructuring the company operations.</p> <p>A review of vessel configuration at the Interisland Line has started and the vessel <em>Arahura</em> has returned to service following refurbishment – all in the face of intense competition, he said.</p> <p>"Following continuation of past operational efficiency issues associated with the vessel <em>Aratere</em> , a detailed review is underway to ensure our vessel fleet has the best possible configuration and operating processes to meet our customers needs," Mr Rowsthorn said.</p> <p>On the land side, Toll NZ reacquired the outstanding 50% share in its Tranz Scenic passenger rail operation and has also started restructuring this business, he said.</p> <p>Toll NZ also disposed of its 27% interest in the non-core Australian Transport Network – now owned by Toll Holdings’s 50%-owned Australian rail operation Pacific National.</p> <p>The company also completed the transaction for returning the rail network to government ownership – for the nominal fee of NZ$1.</p> <p>Progress with track maintenance and capital expenditure priorities under the newly formed New Zealand Railways Corporation is "generally satisfactory", he said.</p> <p>"The company is confident that we have established a sound framework from which rail can grow its share of the country’s freight task and greatly improve New Zealand’s transport capacity and efficiency," Mr Rowsthorn said.</p> <p>Trading since June 2004 was "in line with expectations" and restructuring would continue.</p> <p>However Toll NZ warned that should fuel prices remain near record levels it could affect growth in the Asian region and that might affect the New Zealand economy.</p> <p>The company has established a customer surcharge to minimise the impact of rising fuel costs. </p> <br />
