REPORTING SEASON: Toll Holdings (TOL)

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Figure 1: Toll Holdings 12 month chart

 

Transport firm Toll Holdings (TOL) reported a 1.4% lift in net profit for the first half of 2014.

TOL’s profit and earnings were slightly below market expectations.

The market knew that the result would be in line with last year’s numbers due to prior guidance and the loss of large contracts over the last year.

Revenue from Toll Specialised and Domestic Freight was $714 million, higher over the half but hit by the loss of its defence contract to LinFox.

Toll Resources revenue was only slightly higher as the pull-back in mining and completion of its Timor contract cut demand for its services.

Toll Domestic Forwarding revenue hit $598 million, even with the total of containers moved remaining flat and tough competition in the space.

TOL’s new Tasmanian facility upgrade is going well and cost control is tight.

Toll Global Forwarding revenue increased to $795 million, helped by ocean freight volumes up 15%, but air freight volumes continued to slide down 9%.

The division is making good headway in its cost savings program but the Global Forwarding result was still below market expectations.

Toll did reiterate its full year forecast that it “expects underlying earnings before income tax (EBIT) for 2014 FY to be ahead of the prior year”.

Toll will pay an interim dividend of $0.13 a share, on the 4th of April 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliana Roadley, Market Analyst,