The company remains confident of further growth in its logistics divisions
Automotive Holdings Group has posted record first-half statutory net profit of $48.2 million, a 7 per cent increase.
While the Automotive division drove the performance, a strong focus on cost controls in the company’s logistics operations was in the mix.
“It is a pleasing result in a challenging market, across both Automotive and Logistics,” AHG MD Bronte Howson says.
With the sale of Covs to GPC Asia Pacific set to be completed in March and low fuel price and interest rates, the company remains confident of further growth in its logistics division.
The Refrigerated Logistics division reported revenue of $308.2 million for the half‐year, a fall from the previous period’s $319.1 million due to low transport volumes.
“The performance in Refrigerated Logistics was down on forecast but the division is well placed to capture new revenue and increase earnings,” Howson says.
“AHG is conducting full business reviews and management restructure across its transport and cold storage businesses including Rand, Harris, Scott’s and JAT in order to control costs and streamline utility.
“We have initiated a performance improvement program involving Partners in Performance and PwC to target and deliver further cost savings and improvements in productivity.”
The Other Logistics unit, which comprises AMCAP, Covs, KTM, Husqvarna, Higer Bus and GTB/VSE, delivered revenue of $180.9 million compared with the earlier $195.6 million.
The company says the unit’s performance is indicative of a decline in activity in the mining and resources sectors, and the delay in the sale of Covs.
While both KTM and Husqvarna reported increased revenue despite a negative effect from the weak Australian dollar, the restructured GTB/VSE business reflected an improved outlook for the second half of the financial year “underpinned by a strong order bank”.
“We’ve made significant progress in restructuring our Logistics businesses,” Howson says.
“There is further work to be done but we remain confident in the future of those businesses.”