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CHAIRMAN’S ADDRESS Ladies and Gentlemen, your Company has performed satisfactorily in the past year.
Our profits have increased by some 21% on the previous year and global sales are up by 19%.
Every country in which we operate recorded more profit before tax than in the previous year. Significantly, we reinstated our team bonuses for the period totalling $12 million – the highest in our history.
Also, we were able to make salary adjustments in line with inflation, and do not have significant deferred or repressed expenses in any area of the business.
Perhaps the result which will please shareholders the most is our relative success to all other New Zealand listed companies.
Over the past 15 years we are the best performing stock in terms of wealth creation, of all companies listed on the New Zealand Stock Exchange. Average annual compound growth in share value, including dividends for the past 15 years, has been 26% per annum.
Here is a graph showing the performance of your Company, compared to the next top eight companies.
This is what we are here for, this enables us to grow, keep our good people, contribute to society and build a better country.
It is because of these results that we are a little dismayed when some shareholders and others question the makeup of our Board of Directors.
Firstly, as the best performing company in the country over the past fifteen years, wouldn’t that suggest that we have, at the very least, a committed board?
If we take another business which has been extremely successful over a long period – Berkshire Hathaway – the average age of their board members is 70 years, and there has been a core of directors for more than 30 years. Warren Buffett himself is 81 years old, and is still Chairman and CEO.
Nelson Mandela was 72 years old when he was released in 1990 after 28 years in prison. He went on to become Prime Minister of South Africa at 77 and help the Springboks win the Rugby World Cup in 1995.
As Mainfreight has hundreds of team members who have been with the company for between 10 and 40 years, so we all have a long view of how the business is – and should be. We are not a business fixated by the short term. We are not looking to sell out at a big profit when the price is right.
We have a long strategy to create a business which is always going to last for another hundred years; one which seeks to enrich and inspire all we come into contact with.
This Board has been handpicked after long consideration, in most cases for many years.
We have looked for: - Success in their own careers - Courage - Business ethics - Strong interest in business - Well read - A positive outlook - Logistics experience - A fit with the existing board members and CEO - An enquiring mind.
This Board could be viewed like the Crusaders rugby team. There are no egotists; everyone has been selected because they have a long proven track record to try their hardest to win and keep winning over a long period, regardless of difficulties.
Shareholders must understand that directors are not commodities that one picks from a list supplied by some Directors Association, and any size will do.
During many of our purchases of other businesses we have almost always found some level of dysfunction in their boards. The workers in many of them had no chance of finding success, prosperity, enjoyment or fulfilment. No business will prosper with a dysfunctional board.
The next point that shareholders should consider carefully when suggesting that since we are in Europe, China, USA, and Australia we need to have a national from some, or all, of those countries on our Board.
Certainly, over time that will probably happen, but in the meantime, consider the education that our existing Board has had, and the knowledge that they have acquired of those other countries, through contact with people at all levels in the companies we operate.
They also have the most acute understanding of our Mainfreight culture, the way we do things and why. They are all highly equipped to discuss the merits of internal promotion, weekly profits, whiteboards, clean trucks, open plan offices, eating together etc and can spot an inflated ego from a thousand metres.
For those who may not be aware, we hold all our Board meetings over two days (likely to become three days) at different branches of our businesses in the countries in which we operate.
Not only do the senior people of the country where we are meeting report to the Board, senior people from other countries also report at the same meetings. This enables regular learning and interaction between our teams from different countries and branches.
Lunches are always held in the lunch room or cafeteria of the branch where our Board meeting is being held, with the Board mingling with the local team. Frequently in the evenings the Board meets with senior local and overseas people together with local customers and local team members.
Please believe me – we have a very competent Board.
Forty-eight years ago in 1963 I joined perhaps New Zealand’s premier company of the time – Fisher & Paykel.
The company was run by Woolf Fisher and Maurice Paykel, but the most talked about man was their factory manager, “Don Rowlands”.
He had the most enormous reputation for every skill known to man, but including man management, getting things done, going incredibly fast, multi-tasking, meeting the Queen and Duke, having the most modern ideas, creating a great team etc etc.
It was two years before I got to stand quite close to this extraordinary man and listen to him talk. His theme that first time I saw him was “if you have a union problem you probably have a management problem”. From that day, although he didn’t know it, he became my mentor.
In 1966 I was fortunate to be moved to a new venture of Fisher & Paykel’s – “Champion Spark Plugs”. Here, Don Rowlands was the GM, John Hough the Accountant and me Assistant Accountant.
What a fantastic four years I spent observing Don, listening to everything he said, and learning to understand his way of thinking and doing. His generosity of spirit was legendary. Ask him if you could borrow his trailer – he would make one out of next to nothing so as not to let you down.
In 1970 I left Champion and joined the freight industry and on 6th March 1978 began the business Mainfreight, with a couple of mates in a 17,000’ building at 135 Morrin Road, Panmure.
Don turned up on about day 3. Between beers he observed that our shed was close to empty and wondered if he could have a few thousand feet to manufacture rowing starting pontoons for the 1978 World Rowing Championship at Karapiro which he was organising. It wasn’t long before we had to work around the volunteer rowers who were making and painting pontoons.
I should mention that to get the Championship held in New Zealand, Don had to guarantee to buy all the skiffs off the other countries after the event.
Naturally they all arrived back at 135 Morrin Road from where they were sold over a reasonably short period. By now Don was Managing Director of Fisher & Paykel and I felt privileged to have him regularly visit for drinks over the years.
In 1983, Mainfreight was going pretty well but needed more structure and discipline. I asked Don if he would become our Chairman to which he agreed.
This role he fulfilled for 13 years until 1996 when the Company was listed on the Stock Exchange, and he continued as a Director.
So Don, our hero, friend, mentor and fellow director has been associated with Mainfreight for 33 years - and a Director for 28 years.
He is now 85, is still married to his first wife Coralie , has had two heart bypass operations, goes to the gym twice a week, hasn’t lost a single marble, still calls into Mainfreight most weeks and thinks it is now time he moved on.
Well, we have grudgingly accepted his intention to retire from the Mainfreight Board – to take effect later this year.
Before I invite Don to say a few words, I also have to tell you that as advised to the NZX on Tuesday this week, Neil Graham, who has been my partner for the whole time Mainfreight has existed, tendered his resignation as a Director of Mainfreight, because of his health.
Neil has battled a number of health problems throughout his life. Recently, the loss of virtually all his property in Christchurch including his family home, as a result of the multiple earthquakes, has added hugely to his difficulties, and he has chosen to stand aside.
Neil and I have been friends and business associates since 1970, when I joined the freight industry in Auckland – he was the Christchurch Branch Manager.
Without Neil here, it is perhaps not appropriate to make a long summation. However, in our 41 years together we have only ever had one serious argument. It occurred when we were staying in a hotel in London in 1983 when, after watching a Canterbury/Auckland rugby match, I had the temerity to suggest the Canterbury team might have been guilty of foul play. It took more than 2 days for the air to clear, and for us to start talking again.
Neil’s contribution to Mainfreight has been huge, particularly in the gaining and keeping of some of the biggest business customers in New Zealand. Some are names that have now ceased to exist or have morphed into other companies, but the names New Zealand Wheat Board, New Zealand Honey Marketing Authority, Carter Holt, Firestone Tyres, Dulux, Canterbury Timber Products, Abcal, Wickliffe Press, Skellerup, and Crown Crystal Glass are only a few.
It is unlikely that we will have such a big personality in our business again. People with Neil’s unique skills and personal attributes perhaps only come along once in a lifetime.
Neil will always remain a part of Mainfreight and we will miss him and know that he will deal with his present health problems with all his strength.
Ladies and Gentlemen – Don Rowlands. Don Rowlands to address the shareholders.
GROUP MANAGING DIRECTOR'S REPORT
Ladies and Gentlemen It is a pleasure to speak with you today.
Whilst this meeting provides an opportunity to reflect on Mainfreight’s performance during the previous twelve months, it is also an important time, for you, our shareholders, to learn more about your Company and the future we see for the business.
It is the performance and activities of the past twelve months that have redefined Mainfreight’s future.
During this period we have been able to improve our revenues to $1.34 billion and achieve a record net profit before abnormals of $47 million.
Our operating profit, our largest ever, finished the year at $92 million.
The disciplines and sales strategies put in place during the recessionary years provided the basis for this improved result. More importantly, strong and focussed performance from all our business units allowed us the time to identify and complete the acquisition of our first European operation, the Wim Bosman Group.
The momentum of our organic growth and profit performance from our established businesses, coupled with the Wim Bosman Group provides the basis for the exciting future that we see for Mainfreight.
The rationale for the acquisition was to: - Firstly, provide us with a European footprint, with a business that complements and mirrors Mainfreight.
Wim Bosman Group provides defined-day delivery (express LCL freight) across most of Western Europe and is developing services to Eastern Europe; it has exceptional third party logistics (warehousing) facilities; and has an under-developed international Air and Ocean operation – our area of expertise.
- Secondly, provide us with the logistics capability to grow our international freight between Europe and our Asian and American interests.
These two trade lanes, coupled with our already successful Asia-America trade lanes, are the three largest freight lanes in the world.
What better place to be when developing an international transport and logistics group of businesses? For this is what we intend to become.
Whilst still small when compared to our competition and the size of the market, we are on our way.
When including the expected financial contribution from the Wim Bosman Group with our results of this past twelve months, next year’s results will likely see revenues close to $1.9 billion, and EBITDA in excess of $130 million, shifting EBITDA ratios to more than 70% earned offshore, and 77% of revenue being generated outside of New Zealand.
These numbers exclude the improvement in performance we should expect of our established businesses in Australasia, Asia and the United States of America. This is not to say we are turning our back on New Zealand.
We are proud to be here, to be New Zealand owned and publicly listed; although a better managed and informed share market would make life a little easier.
Our New Zealand operations continue to find more growth; we have secured more distribution for the supermarket industry; we expect to continue to invest in and develop our New Zealand network.
Our new Wellington facility, linked by rail, is expected to be operational as the Rugby World Cup kicks off in September.
Capital expenditure for development continues for Kaitaia, Palmerston North, Blenheim, Invercargill and Christchurch. All our New Zealand business is trading at levels ahead of the year prior; we still see opportunities for growth in our home market.
In Australia, our Domestic operations continue to grow revenue and improve profitability; how long these levels of growth can be sustained remains in our hands. We still only have a small percentage of the available market share and providing we continue to develop more quality and innovative services, the more opportunity we have to maintain growth at these levels.
Our Logistics and International operations require a greater impetus to find growth. We expect to have a greater share of these markets than we do currently.
Capital expenditure will be substantial in Australia as we commit to land and buildings in the near term for Brisbane and Melbourne.
Our Asian business remains small by market standards, however we are achieving growth and our commitment to the region has seen us establish operations in Singapore and more locations in China.
Southeast Asian growth remains high on our agenda as we look to develop intra Asia trade with areas of manufacturing outside of China.
We were fortunate enough to be invited to participate in the Prime Minister’s recent Trade Mission to India.
This provided a valuable insight into the opportunities available to us there, initially for inbound international freight to India as domestic consumption and growth rallies in this region.
India certainly has a place in our network, and likely in the near term.
Our Asian volumes are expected to double as we develop trade through the Wim Bosman Group in Europe, and will likely overtake the level of volume on the China/USA trade lane over time.
In the United States, our NVOCC operation, CaroTrans continues to perform well and is expanding its network to include Dallas, Seattle and Chile. However USA export sea freight volumes have disappointed of late, affecting revenue levels and profitability.
Stronger management of costs, margins and more aggressive sales strategies are needed to achieve CaroTrans’ targets for this coming year.
Expansion of the CaroTrans world-wide network will continue to feature in our plans with a likely entry into the European market in the near term.
Mainfreight USA continues to improve its performance from the disappointing levels seen since acquisition.
It is our goal to achieve a 2% return on revenue at the profit before tax line in this coming year. Profit performance to date gives us confidence that we are on track to achieve this. Obviously over time we would expect returns to further improve to levels that we achieve elsewhere.
Again we expect good levels of growth from the USA to Europe to assist our European development.
Splitting Mainfreight USA into Domestic and International divisions, as we do elsewhere, will assist our focus on developing both aspects of the business at greater pace.
We have achieved a lot during these past twelve months; we are well positioned and excited about the potential for increased growth and development that is in front of us.
We do have much to do to achieve this, and are very aware of the risks and challenges. We are well prepared and with the passion, energy, commitment and skills that are evident across the business – from the freight terminal to the Boardroom – we will find our way.
Expect our first quarter results, scheduled for release on the 11th of August, to reflect some of this growth.
I would like to take this opportunity, on behalf of the Mainfreight Team, to also acknowledge the contributions of Don Rowlands and Neil Graham; not just at the Board table, but also their assistance on a daily basis, offering support and guidance to all of us, no matter our position or role.
From Don Rowlands, the regular visits, particularly on Mondays when the profit calls would begin, always with a smile, an offer of encouragement and the application of simple logic to solve a problem. When he spoke, you knew you were receiving a leadership lesson worth bottling. Thank you, Don.
And Neil, a fellow Cantab – who was inextricably linked to me by Bruce who thought our brains were wired differently because of that Cantab breeding, often referring to our behaviour as “oafish”. Neil’s commitment and passion for Mainfreight could never, and will never, be questioned; nor will the effective part that he has played in building this company to what it is today. His attention to the detail, whether it be the sales teams’ performance, the claims statistics, the cleanliness and presentation of our trucks, or simply our ability to beat the competition – meant you always knew you would be challenged.
This desire to be better, lies at the heart of our performance. Neil, you may not be here in person, but thank you.
This Company has been proudly served by these two gentlemen; we will be the poorer for not having them with us, either at the Board table or on the Dock.
However it is not a sad moment in our history; it is part of the journey, and we intend having them both as part of the Mainfreight family for many years to come.
I simply cannot understand the criticism that has been levelled at our Board for its age and longevity of tenure.
As CEO I can advise this meeting that the help and assistance I receive from these Board members is crucial to our success.
Each has a deep knowledge of the transport industry, and the culture and reasons for the success of Mainfreight.
Importantly, we are all significant shareholders. To bow to politically correct and pedantic opinion is not part of our make-up. Replacing these men from a “pool” of retired businessmen and professional directors could significantly impact your investment in us.
We are in defining times.
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Ladies and Gentlemen, your Company has performed satisfactorily in the past year.
Our profits have increased by 39% on the previous year, and global sales are up by 35%.
In the previous year, when reading out these results, the net after tax profit had increased by 21% and global sales by 19%.
In the past five years since 2007, net profit has increased by 62% and sales by 99%.
There are few companies in New Zealand which can compare with these year-on-year results, nor the results achieved through the global financial crisis.
As we emphasise each year, we are here for the long haul and we continue to invest in our future; in our people, in new facilities, new businesses, and new operations.
Our growth strategy has been to have strong businesses in other countries. These businesses then operate between themselves. This gives us real competitive advantage against opposition companies who are reliant on agents to follow up sales leads, or perform services.
For this reason it is disappointing that some commentators regard it as a negative that we are "in Europe" or "in the USA" or "wherever". The very fact that we are in those places assists in the activity and profits of all the other countries in which we operate.
In the same way that the real story cannot be measured by looking at calendar operating quarters, it is also a mistake to have a country by country focus. All are inextricably linked with each other, and contributing to each other's profit and success.
We strive to do and be the best at everything we do. Two very visible examples are our "Annual Report" and our "Team's Board Report" which you should all have received. These are written and produced in-house by Don Braid and his team. We are very proud of these communications, and hope you as recipients read and enjoy them.
We believe that austere and unpredictable trading conditions are likely to continue for many years, and that these conditions must be regarded as the "new normal".
The world Mainfreight Team takes considerable pleasure working in this tough environment. It suits our people, our leaders and our personality. The results do our talking for us.
Fellow shareholders, I would now like to ask the Group Managing Director, Don Braid, to present his report.
Group Managing Director's Report
Ladies and Gentlemen Thank you for this opportunity to share with you our performance over the past year and our thoughts for the future.
The past twelve months have been defining for your Company.
We established a footprint in Europe and completed a full year of trading in our newly-acquired business there, and at the same time we continued to find growth and profitability in the majority of our other business units around the world.
Sales revenue now exceeds $1.8 billion producing an EBITDA of $138 million, and a net profit of nearly $66 million.
These results are satisfactory and in line with our expectations. Certainly the momentum we created in the previous twelve months has assisted this growth, and of course the first year's contribution from the European business.
The European contribution, with an EBITDA return of EUR16.5 million did disappoint us. The loss of three key Logistics accounts impacted our earnings. However, we were able to offset this by not reaching the trigger point for payment of an agreed earn-out of EUR10 million to the vendor.
Unfortunately, while two of the three account losses were known during due diligence, the third and largest came as a surprise.
Our team in Europe has worked hard all year to replace this lost revenue and profitability, gaining three significant Logistics accounts and numerous smaller Transport customers. The fourth quarter's performance last year, and likely that of the first half of this year are negatively affected by the lost business, however we are confident that the new customers gained and the improvements we are bringing to the business, will see performance in Europe deliver satisfactory financial results.
The significance of establishing ourselves in Europe should not be underestimated: o It adds to our global footprint; o Multi-national customers are looking for global supply chain competency; o It exposes us to the three largest freight markets in the world and the trade between them, namely: o Asia, o USA and o Europe.
Just this week we have been accepted as the successful tenderer for the Australian distribution of a large global business who is a customer with us in Europe. The opportunities to build and develop these relationships for the benefit of all our businesses is exciting.
In addition to getting established in Europe, in this past year: o We have a far better understanding of European logistics and the strengths and weaknesses of our business there; o We have strengthened our network with offices opened in Lyon, France; Hamina, Finland; Moscow, Russia; Cluy, Romania; and a small FTL operation in some unpronounceable town in Poland. o We have found improved performance in Belgium, reducing the Transport hubs from three to two; o We are rationalising our agency relationships throughout Europe to better reflect the Group's activities and volumes; o And finally, we have established new Air & Ocean branches in Brussels, Paris and Amsterdam - and post year-end we opened a CaroTrans office in Le Havre, France. We are yet to see profit in the Air & Ocean operations in Europe, but expect this to develop in the coming year. The Air & Ocean operations have all been re-branded as Mainfreight (with the exception of our CaroTrans Le Havre office) to link with our global Air & Ocean network.
Throughout the rest of our business units we have had satisfactory performance.
Business improvements in Mainfreight USA include the separation of the Domestic and Air & Ocean profit centres. This brings a stronger focus on each sector. Domestic freight sales will concentrate on Fast Moving Consumer Goods, particularly food and beverage. The US domestic freight market is very large and we are focusing on the full potential available.
International or, as we now wish to refer to it, Air & Ocean, has found good sales growth momentum and has a significant focus on our Asian and European trade lanes. Again, our market share in these trades is small and we have a significant way to go to take full advantage of the opportunities.
CaroTrans' revenue and margin levels were below our expectations as lower export volumes negatively affected performance. A stronger focus on growing import volumes into the US and improving our margins are high priorities in this coming year.
The US market continues to be of significance for us, offering opportunities of a similar scale to those available in Europe. Our structure allows us to tap into this potential from various vantage points and we expect to see ongoing growth in the coming year.
Our Asian operations disappointed, with average profitability in this past year, as we struggled to find suitable air freight capacity at the right price, and endured ongoing volatility in sea freight pricing.
It is our intention to counter this under-performance with greater sales effectiveness within Asia to gain more in-country sales revenue and to bring further development to our logistics and supply chain capability within the region.
Closer to home, our Australian and New Zealand business units performed well. Both delivered increased profitability, and in Australia our domestic freight revenue growth has been very satisfactory.
We continue to extend our range of products and services for our many customers within the region and have a strong focus on food, beverage and DIY-related sectors.
This continued strong growth has seen a requirement to invest in new facilities across both countries. During the year we completed the new Wellington facility which is already receiving and sending more than 50 rail wagons each week north and south bound.
New depots in Palmerston North and Invercargill will be completed by the end of 2012, and contracts have been awarded for the rebuild of our Christchurch facilities. Brisbane land has been purchased and construction will likely start before October. Adelaide will have a rebuild and we hope to finally secure land in Melbourne this year, where we are currently completing due diligence on a 10 hectare site.
Warehousing and Logistics in both countries have seen a surge in utilisation, with both operations requiring additional warehousing facilities to meet demand. All new facilities will be built to the high European standards we have inherited, providing for food quality and pharmaceutical grade warehousing.
Our overall performance in these past 12 months has met our expectations and we would hope yours as well.
However we are under no illusions - we could have done better, and have each of our business units working hard for more improvement, as we progress with our developments around the world.
There is no point in blaming or ignoring the world economic climate. It is what it is, and what we have today is likely to be the operating environment for a while to come.
It is our intention to adapt to that, increasing our sales revenue through high quality logistics and freight services for our customers worldwide, while managing our cost structures and margin performance in line with this sales growth.
Our first quarter's performance for the 2013 year will be released to the market on August the 9th. Within these results we will see an improved performance from the Group excluding the European contribution. This improvement is less than our high expectations but nonetheless is better than the year prior. The European operations will achieve a result similar to fourth quarter performance, which is below the year prior by a considerable amount as we work to implement our new warehousing accounts. Trading will continue to improve from July onwards, however the full benefit of those new customers will not be seen until September when the seasonal low of European holidays is past.
We have reported quarterly since listing. Whilst this provided earnings transparency during our development years in New Zealand and Australia, particularly where seasonality is consistent and easy to explain, in our view it is now appropriate to move to half-yearly reporting to better reflect trading patterns of a global organisation. This will eliminate the inconsistencies that have been a focus of quarter on quarter comparisons.
We remain focused on our long-term success and will not be deterred by short-term quarterly hiccups. We have much to do to improve further and the team around the world is full of energy and passion to continue the development of our company.
We remain proud of what we are building and look forward to your continued support.
Thank you End CA:00225350 For:MFT Type:ADDRESS Time:2012-07-26 16:00:10
10:29am, 21 Mar 2013 | FORECAST Mainfreight today provides a trading update to the market in light of trading results over the past three months. Under our previous quarterly reporting timetable, this information would have been provided in February. Our move to six monthly reporting sees our full year results to 31 March released to the market at the end of May 2013.
Trading Update (figures in NZ dollars unless otherwise stated) Our first six months in the current financial year saw an improvement in EBITDA of 15% over the previous comparable period, excluding our newly acquired European operations. It is expected that improvement over the prior period for the second six months will be at a lesser level, in a range of 7% to 9%.
This is likely to result in our full year EBITDA for the entire group being at similar levels to the 2012 financial year, ie in a range of $137-$139 million as against a market consensus of $146 million. Revenue levels are expected to be in a range of $1.90-$1.95 billion, and net profit excluding abnormals to be in a range of $65-$67 million. Abnormal one-off costs are estimated to be $2.1 million after tax and consist mainly of costs associated with brand protection in Europe.
By Country: o New Zealand earnings remain ahead of the prior year, though below the level of improvement reported in our first half year. o Australian earnings, while well ahead of the year prior, have slowed in the past three months due to increased overhead costs incurred with pre-Christmas volumes, coupled with a downturn in customer trading revenues. o Asian trading continues the trend of the first six months. o American trading is variable. CaroTrans is trading below the levels of the prior year by 3% (at the EBITDA level for the full year). Mainfreight continues to trade ahead of the prior year, predominantly in the Air & Ocean category. However the past three months' trading has not kept pace with increases seen in the first nine months. o European trading is better as both operational progress and recovering economic conditions assist profitability. However the level of improvement has not delivered returns as quickly as we had anticipated. Further improvements are expected in the 2014 financial year.
Our full year financial results for the year ended 31 March 2013 will be released to the market on 29 May 2013. We retain a positive outlook across the Group for the 2014 financial year.
For further information, please contact: Don Braid Group Managing Director Mainfreight +64 (09) 259 5503 / +64 (027) 496 1637
Over on the other channel they are talking about size. They are wrong. Mainfreight is NOT a big concern, nor is it going to be in 2-3 years BUT it will get there. Its the biggest in this part of the world. New Zealand. And has infrastructure around the world. It just has to get bigger and it will. 5 years time it will be a much diff company . Bigger and better. I'm convinced it will be amongst the worlds largest in 10 years. It will have to be 20 x bigger though....
The next big thing on Share Trader wrote he got out of Mainfreight "cause he could see no bounce in the long term". That's just when you should be in. He'll miss out on any upturn released in November. His reader wrote that he could see no benefit owning them. Untrue, they are set to surprise, like they always do.
Not as good as I thought it would be. Sounds relatively downbeat. Promise of more to come after spending heaps getting bigger for, EVERYTHING TO GET BIGGER. Seems perhaps showing a sign of loosening off of economy. Always happens in the trucking (I don't want to use that phrase but cant remember the right one) sector first.
I am expecting a really good result from this company tomorrow. The lead up to the announcement has been good (even though we know insiders DO get an inside on how the company is doing and do trade on that info) and as such expect a decent rise in the div.