NZ results provide surprise boost for trucking group

TRANS-TASMAN TRUCKING group Linfox expects record firsthalf results as consumers stock up on food and alcohol ahead of Christmas.

‘‘Business is extremely strong,’’ said chief executive Michael Byrne.

And New Zealand, where the privately held company recorded $141 million revenue for the year to June 30 2011, is a surprise star.

Healthy revenues from Linfox’s resources business as well as its New Zealand timber business are helping to underpin the increase.

‘‘New Zealand’s having its best year for five years. It has taken us by surprise,’’ Byrne said.

Food and alcohol shipments make the largest contribution in Australia. ‘‘I think we’re very lucky that people always have to eat,’’ Byrne said.

‘‘They might eat and drink different things but typically they eat and drink the same volumes.’’

Byrne said Australian food retailers Coles and Woolworths were ‘‘doing a pretty good job’’ in being innovative in their stores and encouraging people to keep shopping, even if they were switching to cheaper brands.

Linfox was also working with its customers to speed deliveries of products through the supply chain, allowing them to get goods on to supermarket shelves faster, Byrne said.

But he acknowledged other sectors were less buoyant, such as general merchandise, including fridges and television sets.

Linfox’s retail transport business is focused on food and alcohol, meaning it is not exposed to downturns in clothing, electronics or homeware sales.

‘‘I’m glad we’re not in furniture in a big way,’’ Byrne said.

Linfox’s revenues, which run at A$2.2 billion ($2.8b) annually, are up 13-14 per cent in the first four months of fiscal 2013, while earnings before interest and taxation are also higher, Byrne said.

‘‘Revenue this year will probably be at an all-time record in the first half. The business is definitely much stronger than this time last year.’’

Western Australia, where Linfox invested A$200m last year, remains strong, with the group putting an additional A$30m in into the state and South Australia this financial year to buy new equipment like trucks.

The company added 150 road trains, at A$800,000 each, to its WA operations last year, bringing its fleet to about 200.

Linfox’s board recently signed off on a A$42 million investment to build a warehouse in WA suitable for storing food, and it has a new A$5m control room in Perth, which will be manned around the clock to monitor weather patterns and traffic flows.