Interim results see return to black ink as fuel and aviation refuelling also come to party
K&S Corporation has reported a hefty rise in its net interim performance, with the big noise is in the long-awaited good news in eastern state operations.
The first half returned $4.1 million from the previous corresponding period’s loss of $87.6 million and management can probably wear operating revenue at $352 million being down 0.9 per cent.
But after several years of lamenting hard times on its traditional routes, it must be relief for MD Paul Sarant and his team to be able to state: “The performance of our east coast operations during the first half year period has improved; this includes both intermodal and contract logistics operations.”
Cost reduction strategies “have continued to be implemented across the business, including the rationalisation and replacement of specific fleet, employee reductions and IT solutions introduced to improve customer service, operational efficiencies and cost reduction initiatives.
“The cost reduction strategies have had a positive impact on the result for the first half year period.”
K&S last month completed the amalgamation of K&S Freighters with Scott Transport Industries (STI), gaining more general freight and fuel transport business and ‘blue chip’ manufacturing, fuel and fast moving consumer goods customers.
It expects the move to provide additional volume to its existing intermodal and contract logistics divisions and to lead to a “more competitive and stronger combined business in an increasingly challenging environment”.
Still, old practices die hard and the firm would not hazard a full-year forecast, bar saying the second half would likely be weaker than the first half but stronger than last year’s second half.
Most cost lines were down, including contactor expenses $5.5 million to $89.9 million, though half that was offset by employee expenses rising to $115.2 million, while fleet expenses were down $1 million to $67.5 million.