Subscribe to RSS feedToll looks overseas for future growth
The reliance of Toll Holdings on the Australian and New Zealand markets would likely decrease over time as the transport and logistics giant shifts its focus to Asia, managing director Paul Little has reiterated.
"While Australia continues to be the key contributor to group earnings, its percentage contribution reduced marginally as Toll Global Forwarding and Toll Asia enhanced their respective positions," Mr Little told shareholders at the company’s annual general meeting yesterday.
"It is envisaged this trend will continue as future growth from mergers and acquisitions, outsourcing and contract wins are more likely from outside Australia and New Zealand."
It is a message shareholders will be familiar with.
The Toll Group has expanded aggressively in Asia this year, with acquisitions far exceeding those made last year.
Acquisitions this year included China’s ST-Anda Logistics, a 40% stake in India’s BIC, three Asian-based international express businesses and Footwork Japan.
In June, Toll bought the Asian operations of Deltec in Hong Kong, Singapore and Australia to complement its existing airfreight operations in Australia and New Zealand.
The company also added Perkins Shipping in the Northern Territory to its list of acquisitions.
Mr Little said Toll was pursuing a number of outsourcing opportunities.
"Mergers and acquisition opportunities remain exciting with valuation multiples still low and private equity under pressure to release debt-laden assets," Mr Little said.
"Toll is excellently positioned to benefit from economic recovery, particularly in our global forwarding and express activities throughout Asia Pacific."
The economic landscape remained tough but the company’s financial performance had been in line with targets.
"Short to medium transparency of customer volumes and trends remain uncertain and challenging," Mr Little said
"In addition, the translation of earnings from our offshore businesses is being adversely affected by the stronger Australian dollar.
"The second quarter trading volumes contain key seasonally high targets and trading over the next six weeks will be critical in achieving full year targets."
Toll’s posted a net profit of $270m in the 2008/09 financial year, after a loss of $695m in the previous year.
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