REPORTING SEASON: Toll Holdings Ltd (TOL)

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Figure 1: Toll Holdings Ltd 12 month chart

 

Toll Holdings (TOL) expects more headwinds in the year ahead

·         Transport giant Toll Holdings has reported a full year Net Profit After Tax (NPAT) for 2014 of $293.1Million. The result reflects the scale of the write-downs that were undertaken by TOL a year earlier totalling $245Million, resulting in a Net Profit of $91.7Million for the 2013 year.

·         Restructuring, cost improvement initiatives and the addition of new contracts were able to offset the challenging market conditions experienced during the year. Global Forwarding earnings benefitted from cost savings despite its markets remaining difficult. The Global Logistics business was supported by the results from its Asian activities, in addition to a creditable result in Australia.

·         Domestic businesses remained pressured by weakness in the mining sector and low volumes in the retail sector. Restructuring activities have been undertaken across a number of businesses that are expected to deliver benefit over the medium term in addition to investments that will position the businesses for future growth.

·         TOL announced a final fully franked dividend of $0.15 per share which will be paid to shareholders on 1 October 2014.The Company’s Dividend Reinvestment Plan (DRP) will remain suspended.

 

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Tom Piotrowski, Market Analyst,