ARB lifts first-half profit as port disruptions weigh
Make us a preferred source
Make us a preferred source on Google
The news: Car accessories supplier ARB Corporation has lifted half-year profit on the back of expanded margins and lower freight costs.
The numbers: The company posted a half-year profit of $51.3 million, up 8.1% from a year ago. However, sales were flat at $341.5 million. It will pay an interim dividend of 34 cents a share, up from 32 cents a year ago.
Shares in the company jumped 12% to $40.07 in early trading on the ASX.
The context: ARB said aftermarket sales were significantly impacted during the second quarter by industrial disputes across Australian ports, resulting in extensive inbound and outbound disruptions. However, sales in January have been strong after the resolution of the port disruptions.
It said current customer orders remain strong and new vehicle sales have returned to growth. The company is positive about the outlook, emphasising a strong order book, expanded operations in the US with the opening of a new branded shop in Seattle, and improving supply of new vehicles globally.
The source: ASX announcement
