Latest / Best of Business / Mark Troughear: Freightways CEO on the rise in net profits for the year

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Mark Troughear: Freightways CEO on the rise in net profits for the year · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks be follow
• 0:12
  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Reporting season back here. Although it's got to review mirror
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  Speaker 2: vibe about it, of course, it is a good look
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  Speaker 2: as to how our economy is moving or not. Freightways
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  Speaker 2: as always star of the show. They've seen that profit
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  Speaker 2: up twelve point nine percent. Revenue also rose up six
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  Speaker 2: point six percent to one point three billion. Mike tro
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  Speaker 2: here is the Freightways CEO and is back with this.
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  Speaker 2: Make very good morning to you. Yeah, good morning, Mike,
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  Speaker 2: you'd be pretty happy.
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  Speaker 3: Yeah, look, really good result for our team. I think
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  Speaker 3: they've done some pretty hard work over the last couple
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  Speaker 3: of years and really neat to see it come out
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  Speaker 3: in that full year result.
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  Speaker 2: Your individual company's careers post haste, Big Chill, Do they
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  Speaker 2: vary widely in performance at any given time or do
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  Speaker 2: you give them all the same treatment therefore they roll
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  Speaker 2: along the same.
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  Speaker 3: They can be very a little bit so Big Chills.
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  Speaker 3: Finding it a little bit harder at the moment because
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  Speaker 3: they deliver a lot of premium food into restaurants, cafe's hospitality,
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  Speaker 3: and so you're really seeing that sector recover so yeah,
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  Speaker 3: they're struggling a little bit more than say New Zand
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  Speaker 3: couriers or post haste that are delivering e commerce and
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  Speaker 3: business to business deliveries.
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  Speaker 2: What do I look at in your result and what
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  Speaker 2: does it tell me about the broader New Zealand economy
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  Speaker 2: of anything.
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  Speaker 3: We've got a key measure where we look at all
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  Speaker 3: of our existing customers and we see how well they're trading.
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  Speaker 3: And for the last two and a half years it's
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  Speaker 3: like we've been writing into a bloody headwind, so they've
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  Speaker 3: been trading down for two and a half years. In
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  Speaker 3: the last six months there's just a sliver of growth
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  Speaker 3: amongst those customers. So that's really the green tinge. I
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  Speaker 3: don't know if it's a shoot, but the green tinge
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  Speaker 3: that we're looking for is those customers just doing a
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  Speaker 3: little bit better.
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  Speaker 2: NBR has got a headline this morning it says you
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  Speaker 2: are the guide to the start of the New Zealand
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  Speaker 2: economic recovery. Is that fair?
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  Speaker 3: Look, we're a more diversified business these day. It's about
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  Speaker 3: a third of our revenue and earnings come from Australia.
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  Speaker 3: But if you do look at those curier businesses and
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  Speaker 3: the customers there there's about fifty thousand business customers, so
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  Speaker 3: there's a pretty good cross section of New Zealand and
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  Speaker 3: I guess we feel just a little bit of a turnaround.
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  Speaker 3: I've been through three recessions of this business and they're
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  Speaker 3: all a little bit different. But I think with this one, yeah,
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  Speaker 3: we might have just broken the back of it.
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  Speaker 2: Good express package volume zero point four compared to Australia's twelve.
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  Speaker 2: Is that just the tale of two countries and economies.
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  Speaker 3: Are tale of two different niches. Really, the business we
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  Speaker 3: have in Australia's picking up a lot of market share,
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  Speaker 3: does a really good job in a niche. Their customers
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  Speaker 3: are growing really well, which is not really symptomatic over
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  Speaker 3: the Aussie economy. It's just that they've got some customers
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  Speaker 3: that are doing a bloody good job. So yeah, you
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  Speaker 3: can't really read New Zealand Australian economy into those turn numbers.
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  Speaker 2: I get you back here in November December. Do you
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  Speaker 2: tell a more positive story of New Zealand? Will the
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  Speaker 2: shades of whatever you were talking about, the actual shoots
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  Speaker 2: or more?
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  Speaker 3: Yeah, the green tinges growing couple of entimeters, Yeah, I
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  Speaker 3: think we will, Mike, I think it'll keep improving from
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  Speaker 3: here on out. I'm not sure it'll be quick. I
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  Speaker 3: don't think it'll happen in a great rush, but I
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  Speaker 3: think there'll be a very very slow city improvement from
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  Speaker 3: here on.
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  Speaker 2: Great great stuff. Congratulations again, appreciate your times always. Mactro here,
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  Speaker 2: who's the Freightwave CEO?
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  Speaker 1: With us this morning for more from News Talks, ed
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