K&S Corporation reports strong mid-year profit result

By: Jason Whittaker


K&S Corporation has announced a more than 20 percent increase in profit as its operations continue to grow and the

K&S Corporation has announced a more than 20 percent increase in profit as its operations continue to grow and the company looks to increase its revenue after acquiring Brookes Transport.

K&S reported a half yearly profit of $9.8 million — 21.5 percent more than the same time last year.

As its shares reached 14.3 cents each, K & S also saw a jump of 3.9 percent in operating revenue to $223.7 million. The business attributed the increase to the growth of its Australian operation, which grew 4.6 percent over the half-year period. Its New Zealand operations, however, declined 7.8 percent.

K&S’ earnings grew by 23.9 percent, while before-tax profit increased by $2.7 million.

Despite these impressive results, K&S is expecting to boost its bottom line after streamlining the operations of DTM — acquired in November 2006 — and after acquiring Brookes Transport in January.

The company attributed some of its rise in earnings to cutting the cost duplication in the running of DTM, which resulted in annual savings of more than $2 million.

Prior to its acquisition, K&S reported Brookes Transport had annual revenues of $22 million. However, K&S expects to achieve more and cut costs after it integrates the running of the business similar to DTM.

K&S’ rail freight operations also reported strong results based on an increase in its customer base.

According to K&S, its EBIT margin increased from 6.4 percent to 7.4 percent, "reflecting the cost savings from the DTM integration and the productivity improvements for the rail business".

You can also follow our updates by joining our LinkedIn group or liking us on Facebook