Toll pockets $278m gain on NZ sale

27 Aug 2008 20:40NZPA

Australian transport and logistics company Toll Holdings Ltd made a $A225 ($NZ278) million gain on the sale of its rail and ferry business to the government, according to its annual profit report this week.

The gain was disclosed in its presentation as the company reported a $A695 million annual loss in the year to June 30.

The loss resulted from a $A1.18 billion hit from the disposal of its stake in Virgin Blue airline.

The accounts said the rail and ferry business sold to the New Zealand government on June 30 made a $A25m profit in the year to June 30.

It was not possible to work out what Toll's ongoing truck and logistics business makes in New Zealand as it is not separated out in Toll's accounts.

The company described operating conditions in New Zealand as flat.

The New Zealand government has been criticised for paying too much for the rail and ferry assets. It earlier purchased the rail network back from Toll for $1. Toll disputed the access fees to the track it had agreed to in the track sale deal.

 
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