Toll Group has reaffirmed its earnings forecast despite weaker earnings from its international freight business.
The company says weaker market conditions for its global forwarding business have deteriorated over the past six months.
The company today announced a $200 million impairment of goodwill associated with the global forwarding business, which means the value of that asset has been reduced.
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Managing director Brian Kruger said the company would focus on reducing costs and improving productivity to compensate.
“For the foreseeable future, our focus will be on driving costs out of the business and we will not look at further acquisitions in the global forwarding market until we are able to demonstrate improved operating performance in this division,” he said.
Toll expects its operating earnings for the second half of the 2013 financial year to be higher than the same period last year, resulting in reported operating earnings (EBIT) for 2013 between $420 million and $430 million.
The company will release its earnings results for the 12 months on August 22.
