Asciano’s boss a bull on growth

THE Australian economy still has strong growth “fundamentals” despite the cracks emerging as the mining boom unwinds, according to the head of one of the nation’s biggest logistics groups.

Asciano chief John Mullen says the “core aspects” of the economy are healthy.

And his company – widely regarded as a barometer for the broader economy – is well positioned to chalk up stronger profit growth this year, he says.

Speaking as the rail and ports operator released a quarterly trading update yesterday, Mr Mullen said Asciano was on track to lift underlying earnings more than 5 per cent in the year to June. Underlying earnings strip out “one offs”.

He gave a buoyant outlook for next year. “We have still got the fundamentals in Australia to grow; with a growing population you have got economic growth,” he said.

“Most core aspects are growing: housing, construc- tion and employment are good ... If we get on top of our costs and productivity and a few other things like that we will continue to do well.”

Asciano’s update showed a 3.6 per cent increase in activity at port container terminals in the three months to March, compared with the same quarter a year earlier. That was offset by a fall of 2 per cent in coal volume at the group’s rail haulage business, due mainly to a derail- ment, with volumes still strong and Asciano largely unaffected by weaker coal prices. Asciano shares fell 1.6 per cent to close at $ 6.36.