Transport gains fail to deflect lower port volumes and loss of customer
The profit train at Chalmers has hit the buffers with the transport and logistics group seeing its net result fall from $1.08 million to a loss of $739,000.
The disappointing outcome comes despite revenues being only a little more than $1 million down at $60.7 million and despite subcontractor costs falling from $5.57 million to $4.38 million.
“This result contains a provision for $357,000 under ‘onerous contracts’ to cover future losses relating to leased warehouse space in Brisbane,” Chalmers says.
It follows a 36 per cent fall in annual profit last year, which suffered from many of the same obstacles.
Hurting the bottom line was significant underutilisation of Brisbane port warehouse space after the loss of a customer, along with “markedly lower” freight movements there, including reduced grain and beef exports.
“Excess warehouse capacity in the surrounding precinct meant Chalmers was unable to replace this volume other than via short-term lower volume and lower margin business,” the company says
Added to that, its container parks in Brisbane and Melbourne were prey to lower activity and, as mentioned in the March half-yearly results, the Brisbane Tank Wash business drew in heavy investment and delayed operations, “although this facility has now moved into profit”.
But there was a plus side.
“The transport sector performed comparatively well in both location with both revenue and profit performance above that for the corresponding previous period,” the company says.