Colonial Motor 1H profit climbs 42% on heavy truck sales

Colonial Motor 1H profit climbs 42% on heavy truck sales, flags slower second half

Feb. 20 (BusinessDesk) – Colonial Motor Company, the car and tractor dealer, boosted first-half profit by 42 percent on strong truck sales, but is warning the second half will be slower as Thailand floods limit supply.

Net profit was $5.1 million, or 15.6 cents per share, in the six months ended Dec. 31, compared to $3.6 million, or 11 cents per share, a year earlier, the Wellington-based company said in a statement. Sales climbed 17 percent to $272.3 million and the gain was underpinned by a “strong performance from heavy trucks, combined with an excellent last two months by the car dealers,” the company said.

“While the result for the six months has been very good, we do not expect the next six months to be as good,” chairman Jim Gibbons said in a statement. “The new Ford Ranger and Mazda BT50 have had a very strong start, but sales of both have now been severely curtailed as a consequence of the floods in Thailand; there will be material supply constraints for the first half of 2012.”

The board declared a full-imputed interim dividend of 9 cents per share, or $2.9 million, up from 7 cents per share, or $2.3 million, a year earlier. The shares, which trade infrequently, were unchanged at $2.90 today.

CMC wrote down the value of goodwill $810,000 in the half, relating to changes in its Wellington business, it said.

The company said its Hutchison Motors dealership in Christchurch has been demolished, but CMC still doesn’t have full use of the site.

“Getting the necessary approvals for remedial work is both slow and frustrating. We continue to work with our insurer on the various claims,” Gibbons said.

(BusinessDesk)

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