Tranz Rail loses $104m in year of change

<p>Tranz Rail reported a net loss of NZ$122.7m ($104.4m) for the 12 months to June 30 2002, compared with a net profit of NZ$5.6m for the same period last year.</p> <p>The result included NZ$143.3m arising from asset write-downs and changes in accounting treatments.</p> <p>Managing director Michael Beard said the company is performing to budget since balance date and remains confident of achieving its targeted operating profit of NZ$55.8m for the 2003 financial year.</p> <p>"The 2002 financial year was always going to be the most heavily affected by our change program with the benefits of restructuring not appearing until the 2003 financial year." Mr Beard said.</p> <p>Market sentiment appears to have echoed Mr Beard’s outlook this morning (Tuesday, September 17).</p> <p>Although the rail operator was downgraded by credit ratings agency Standard &#38 Poor’s yesterday (Monday, September 16), its share price bounced back on an otherwise flat New Zealand market and brokers said all the bad news about Trans Rail appeared to be out.</p> <br />