Australian logistics firm Toll Group said its full-year net profit rose 3 per cent and global volumes and margins have improved in the early weeks of its fiscal 2011.
Toll, which kept its final dividend unchanged at 13.5 cents, said its full-year net profit rose to $279 million from $270 million a year earlier.
Shares in Toll gained 27 cents, or 4.6 per cent, to $6.10 in early trading, well ahead of the overall market's 0.3 per cent gain.
Net profit before non-recurring items was $292.9 million, down from $298.1 million in the previous corresponding period.
Toll declared a fully franked final dividend of 13.5 cents per share, taking the full year dividend to 25 cents, the same as the prior year.
''Trading conditions in Australia stabilised in the second half of the year and economic conditions are expected to remain generally flat,'' Toll said in its financial report.
''However, cost savings initiatives undertaken through the year have Toll well positioned to benefit from any improvement in economic activity, particularly in the Australian retail sector.'
The company said revenue was stronger in the second half of the year as a result of acquisitions and contract wins, and partly offset by a higher Australian dollar.
Toll expects to see improving margins from its global express business as it sees operational improvements in the recently acquired Footwork Express business.
Marginal improvement
Improving margins and volumes in its global forwarding business during the fourth quarter of fiscal 2010 have continued in the early weeks of fiscal 2011, it said.
Toll's global resources business is pursuing new opportunities across the resource sector, and continued growth is expected.
''Our ongoing investments in technology and fleet, together with new contract opportunities such as the Toll Energy Gorgon contract and the Toll Transitions Defence contract position us well to deliver a strong result in fiscal 2011,'' the company said.
Reuters, AAP