Trailer Magazine

K&S expects downturn in second half of Financial Year

  • Posted on Wednesday 29th, May 2013.

Following stronger first half results in the current financial year, K&S expects that a downturn in the company’s trading performance in the second half of the 2012/13 financial year will result in a similar before tax profit to what was achieved in 2011/12.

The anticipated weaker second half result is based on the continuing pressure on the Australian manufacturing sector, which has in turn adversely impacted the K&S’s business in the eastern states.

Operations of the Western Australian-based Regal Transport subsidiary have also been affected due to the cancelation and deferral of a number of large projects coupled with increased cost focus in the mining and resources sector in recent months.

K&S Corporation’s Managing Director, Greg Stevenson, said: “We are yet to see any benefits flowing through to increased activity levels in the domestic economy from the recent cuts to official interest rates. Our eastern states business has significant leverage to volume and we continue to tender on a number of opportunities to win additional volumes in a very competitive market place.

“The acquisition of Bunbury-based Collare Transport completed in the first half of the 2012/13 financial year is making a positive earnings contribution from a comparatively modest outlay and further demonstrates K&S’ ability to identify quality assets that add value to our business.”

© Copyright Prime Creative Media. All rights reserved.

Find us on Google+