Toll Holdings expects its trading result in the second half of the financial year to be broadly in line with the first half, after the transport and logistics group booked a 32 per cent drop in first half profit. Its shares dived.
Toll reported a net profit for the six months to December 31 of $107 million, down from $158 million in the prior corresponding period.
Toll shares ended the day down $1.55, or 18 per cent, at $7.10, the largest fall in percentage terms of any company on the ASX 200 share index.
Toll managing director Paul Little said Toll had experienced "one of the toughest trading environments for the logistics sector in many years".
The first half result included an adverse impact of $37 million in non-recurring items.
Revenue fell six per cent to $3.3 billion as Toll's major customers traded down on the previous year.
Toll declared an interim dividend of 11.5 cents per share, fully franked, steady with the prior corresponding half.
"Trading conditions in the Australian businesses improved progressively through the period (first half), and revenues for the first two months of calendar 2010 provide encouraging signs that this trend will continue," Toll said in a statement.
"The global resources business is continuing to see higher activity levels off the back of strong commodities demand.
"Our Asian businesses continue to experience flat trading conditions in most regions, and the global forwarding business is still facing the challenging conditions that are being experienced throughout that market segment.
"Overall, we would expect the group's trading results in the second half of the fiscal year to be broadly in line with those achieved in the first half of the year.
"In addition, our strong balance sheet leaves us well positioned to take advantage of value-creating acquisition opportunities as they arise."
AAP
