Logistics group Asciano has warned the remainder of fiscal year 2014 is below expectations:
“It’s a little softer than hoped, particularly in rail and a bit in terminals. The negative impact of foreign exchange and fair value adjustments to US dollar denominated bonds over the period, combined with higher interest expense and the soft top line growth in Pacific National Rail and Terminals & Logistics will result in a flat fiscal 2014 net profit after tax pre material items. It’s definitely mining services related and WA-related.”
Container volume growth lifted but it was due to market share gains:
“We expect second quarter volumes to be weaker than the previous consecutive period before rebounding slightly in the second half of the year,” he said.
Probably a fair enough assessment wit risks skewed to the downside as mining continues to push to deflate costs and consumption remains muted.
