18/12/2014 - 13:22

CTI slides 10% on profit downgrade

18/12/2014 - 13:22

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Shares in transport and warehousing company CTI Logistics have dropped nearly 10 per cent today after a substantial profit downgrade.

CTI slides 10% on profit downgrade
CTI has been providing transport, logistics and business services to the Perth marketplace since 1974.

Shares in transport and warehousing company CTI Logistics have dropped nearly 10 per cent today after a substantial profit downgrade.

The company announced that pre-tax profit for the first six months of this financial year would be down 20 to 24 per cent on last year, after adjusting for an earlier asset sale.

For the same period last year, revenue was $73.8 million, while net profit was around $7 million.

CTI, which is based in West Perth, cited slowing demand from warehousing clients in the lead up to Christmas and weak business activity from the downturn in minerals and energy work as the key causes of the drop.

The company said transport was still performing well, with due diligence being conducted on acquisitions.

CTI ranks fourth in the BNiQ list of WA trucking and logistics companies.  

ASX listed companies in the industry have had a mixed financial year so far, with McAleese Group performing to target in the first quarter, but with a share price fall of nearly two thirds.

Toll expected a softer year, but said it would be able to achieve an increase in underlying earnings.

CTI Fell 9.9 per cent to $1.27 at the time of writing.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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